To obtain the power of the binomial test, we must find P=P(x)>75) when Mean =75.8. If X has a Laplace distribution with mean and standard deviation s, then (x-m)/s has the standard form of the Laplace distribution given in Table 0.2.1. For x<m. It can be shown that
P(X>x) = .5 +.5 (1-e-Ö2ôx-mô¤s)
Applying this formula to our example, we find P=P(X>75)+.682. From the formula for the power of the binomial test in the power computation of a normal distribution, we find that the power is .76. Thus, the form of the distribution of the population can greatly affect the relative power of two tests.
Refer to Section 1.3.3 in the Higgins book. No computations are required to answer the following questions.
What is the value of the power of the binomial test when μ = 75? (1 point)
What happens to the power as μ gets large? (1 point)
How does increasing the sample size affects the power of the binomial test? (1 point) :The following is the information from the Higgins book:
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