Suppose that in Example 12.1 the manufacturer of the new medication feels that the odds are 4 to 1 that with this medication the recovery rate from the disease is 0.90 rather than 0.60. With these odds, what are the probabilities that he will make a wrong decision if he uses the decision function
Answer to relevant QuestionsWith reference to Exercise 12.3, suppose that we had wanted to test the null hypothesis k ≤ 2 against the alternative hypothesis k > 2. Find the probabilities of (a) Type I errors for k = 0, 1, and 2; (b) Type II errors ...A random sample of size n is to be used to test the null hypothesis that the parameter θ of an exponential population equals θ0 against the alternative that it does not equal θ0. (a) Find an expression for the likelihood ...An airline wants to test the null hypothesis that 60 percent of its passengers object to smoking inside the plane. Explain under what conditions they would be committing a type I error and under what conditions they would be ...Rework Example 12.3 with (a) β = 0.03; (b) β = 0.01. 12.38. Example 12.3 With reference to Example 12.2, determine the minimum sample size needed to test the null hypothesis µ0 = 10 against the alternative hypothesis ...A single observation of a random variable having an exponential distribution is used to test the null hypothesis that the mean of the distribution is θ = 2 against the alternative that it is θ = 5. If the null hypothesis ...
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