QUESTION 1 (14 MARKS)

Hypothesis testing analyses differences between a sample statistic and the results you would expect if a

null hypothesis was true. In doing so, hypothesis testing gives you a method to make inferences about a

population that is based on sample statistic a hypothesis test examines.

Required:

a. Explain why you think "The mean of a sample is equal to 55" is NOT an appropriate null hypothesis.

(2 marks)

b. What does the test statistic measure?

(2 marks)

c. Suppose in testing a hypothesis about a proportion, the p-value is computed to be 0.043. How should

the null hypothesis be rejected?

(2 marks)

d. Describe when is the Type error I is committed?

(2 marks)

e. Describe when is the Type error II is committed?

(2 marks)

f. Describe what does it mean if a test of hypothesis has a Type I error probability () of 0.01.

(2 marks)

g. Describe what can you tell about the power of the test if you know that the probability of committing

a Type II error () is 5%,

(2 marks)