Can explain how to do these problems?
1 Type II Error: For the roulette table in (Q6), determine which hypothesis testing scenario has the larger Type II error probability for a two-sided hypothesis for HO: p=18/19:
1. a) N=10,000, p=0.96 , α=0.05 OR b) N=10,000, p=0.97 , α=0.05.
2. a) N=10,000, p=0.96, α=0.05 OR b) N=50,000, p=0.96, α=0.05.
3. a) N=10,000, p=0.97, α=0.05 OR b) N=10,000, p=0.97, α=0.01. Describe how the Type II error is influenced by N, p and α.
Q6:
Suppose that you are the manager of a casino and you collect data on one of your roulette tables. You find that among the last 10,000 bets, there were only 350 bets for which a red or black number did not win. On average, you expect the proportion of winning bets for black or red to equal p=18/19.
2. Hypothesis Testing: You collect data on N=100 individuals of similar height and weight who enter the Whole 30 diet program. You plan to conduct the following two-sided hypothesis test (α=0.01): H0: The average weight loss is 5 pounds (µ=5). HA: The average weight loss is not 5 pounds (µ≠5).
a) Suppose the true mean weight loss (µ) does equal 5 pounds. You compute a test statistic of Z = 2.2.
(i) State your decision: Reject H0 / Do Not Reject H0. (Circle your answer clearly)
(ii) Was an error made? Type I Error / Type II Error / Neither. (Circle your answer clearly)
b) Suppose the true mean weight loss (µ) equals 7 pounds. You compute a test statistic of Z = 2.2.
(i) State your decision: Reject H0 / Do Not Reject H0. (Circle your answer clearly)
(ii) Was an error made? Type I Error / Type II Error / Neither. (Circle your answer clearly)
6)
2)
a) for 0.01 level rejection region z<-2.576 or z>2.576
as test statistic falls in rejection region;
i)Reject Ho
ii)Type I error ; as we rejecting null when it is true)
b) std error =std deviation/(n)1/2 =10/(100)1/2 =1
for 0.05 level ; critcal vlaue of z =1.96
; acceptance region =sample mean -/+ z*std error = 5-/+ 1.96*1 =3.04 to 6.96
hence type II error =probability of not rejecting given mean is 6 =P(3.04<X<6.96)=P((3.04-6)/1<Z<(6.96-6)/1)
=P(-2.96<Z<0.96) =0.8315-0.0015 =0.8300
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