PROBLEM 1E

Let Y be b(100, p). To test H0: p = 0.08 against H1: p < 0.08, we rejectH0 and acceptH1 if and only if Y ≤ 6.

(a) Determine the significance level α of the test.

(b) Find the probability of the Type II error if, in fact, p = 0.04.

POWERPOINT 7 ● distribution of sample means = the total number of sample means that are obtained for all of the possible random samples of a particular size (n) from a population ● we are examining the spread of our sample means ● statistics (values associated with a sample) have sampling variability associated with them ● sampling distribution = distribution of statistics obtained by selecting all the possible samples of a specific size from a population ● sample means pile up around the population mean ● sample means tend to form a normal distribution ● the larger the sample size, the closer the sample means will be to the population means ● it is virtually impossible to