I have tried searching and I am still a little confused, so I thought just loading up the problem I am working on will help me understand this better.
Originally Posted by Problem
A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200. They suspect that the average fee charged by one particular clinic for this procedure is higher than $1200. The insurer wants to perform a hypothesis test to determine whether their suspicion is correct. Preliminary data analyses indicate that it is reasonable to apply a z-test. The hypotheses are
H0 = $1,200
H1 > 1,200
σ = $180
n = 38
Find the probability of a Type II error and the power for μ = $1075, $1100, $1150, $1175, $1190.