Suppose that a random sample of 10,000 observations is
Chapter 9, Problem 2(choose chapter or problem)
Suppose that a random sample of 10,000 observations is taken from the normal distribution with unknown mean and known variance is 1, and it is desired to test the following hypotheses at the level of significance 0.05: H0: = 0, H1: = 0. Suppose also that the test procedure specifies rejecting H0 when |Xn| c, where the constant c is chosen so that Pr(|Xn| c| = 0) = 0.05. Find the probability that the 9.10 Supplementary Exercises 621 test will reject H0 if (a) the actual value of is 0.01, and (b) the actual value of is 0.02.
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