Let us illustrate the calculation of the type II error () and the statistical power via a
Question:
Let us illustrate the calculation of the type II error (β) and the statistical power via a simple example. Consider the problem of estimating the spend on a particular type of sweet per day where, historically, the average spend is £19.44 per day with a standard deviation of £6.23. The shop would like to check whether or not the current spending per day is still £19.44 and they have decided to collect a sample on a particular day of size 32, which results in average sample spend of £23.40.
The shop, after consultation with an analyst, decides to conduct a one sample t-test, but they would like to know how confi dent they can be in the outcome of applying this test to the data.
In other words, what is the probability of accepting a true alternative hypothesis or rejecting a false null hypothesis?
Figure 6.33 illustrates a pictorial representation of the solution process.
Step by Step Answer:
Figure 634 illustrates the three steps involved in calculating the type II error and the size of th...View the full answer
