Answer to Question 1
The operating characteristic (OC) curve plots the probability that the hypothesis test will not reject the null hypothesis for assumed values for the population mean. The OC curve is the complement of the power curve. It is found by plotting (on the vertical axis) versus the population mean (on the horizontal axis).
Answer to Question 2
The power of a test is the probability that the test will respond correctly by rejecting a false null hypothesis. By calculating the power of the test (1 - ) for several assumed values for the population mean and plotting the power (on the vertical axis) versus the population mean (on the horizontal axis), we arrive at the power curve. By looking at the power curve, we can get an idea of how powerful the hypothesis test is for different possible values of the population mean.
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