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It is a consolidation of basic probability concepts worth understanding before attempting to apply probability concepts for predictions. The material is formed from different sources. ll the sources are acknowledged.
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Chapter 6: Normal Probability Distribution
6.3: Sampling Distributions and Estimators
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It is a consolidation of basic probability concepts worth understanding before attempting to apply probability concepts for predictions. The material is formed from different sources. ll the sources are acknowledged.
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Chapter 6: Normal Probability Distribution
6.3: Sampling Distributions and Estimators
This is a presentation that I put together while in college to educate other students about 401k's. My intention was to get them to participate in a company 401k if offered at their starting jobs. Originally the presentation had an intro slide show of people moving from college through various stages of life to retirement with the Rolling Stone's "Time is on My Side" playing in the background. Unfortunately, Slideshare doesn't support embedded video and audio, since that was probably my favorite part of the presentation.
It gives detail description about probability, types of probability, difference between mutually exclusive events and independent events, difference between conditional and unconditional probability and Bayes' theorem
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Elementary Statistics Practice Test 2 Solutions
Chapter 4: Probability
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Chapter 5: Discrete Probability Distribution
5.1: Probability Distribution
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Chapter 7: Estimating Parameters and Determining Sample Sizes
7.2: Estimating a Population Mean
History behind the
development of the concept
In 1654, a gambler Chevalier De Metre approached the well known Mathematician Blaise Pascal for certain dice problem. Pascal became interested in these problems and discussed it further with Pierre de Fermat. Both of them solved these problems independently. Since then this concept gained limelight.
Basic Things About The Concept
Probability is used to quantify an attitude of mind towards some uncertain proposition.
The higher the probability of an event, the more certain we are that the event will occur.
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It gives detail description about probability, types of probability, difference between mutually exclusive events and independent events, difference between conditional and unconditional probability and Bayes' theorem
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Elementary Statistics Practice Test 2 Solutions
Chapter 4: Probability
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Chapter 5: Discrete Probability Distribution
5.1: Probability Distribution
Asset allocation is an investment strategy. It helps to keep a balance between risk and return of any particular asset class. Asset allocation refers to investing a certain percentage of your investible surplus in respective asset classes, such as equity, debt, gold and real estate. Read to understand asset allocation in detail.
Please Subscribe to this Channel for more solutions and lectures
http://www.youtube.com/onlineteaching
Chapter 7: Estimating Parameters and Determining Sample Sizes
7.2: Estimating a Population Mean
History behind the
development of the concept
In 1654, a gambler Chevalier De Metre approached the well known Mathematician Blaise Pascal for certain dice problem. Pascal became interested in these problems and discussed it further with Pierre de Fermat. Both of them solved these problems independently. Since then this concept gained limelight.
Basic Things About The Concept
Probability is used to quantify an attitude of mind towards some uncertain proposition.
The higher the probability of an event, the more certain we are that the event will occur.
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Please put answers below the boxes1) A politician claims that .docxLeilaniPoolsy
Please put answers below the boxes
1)
A politician claims that he is supported by a clear majority of voters. In a recent survey, 35 out of 51 randomly selected voters indicated that they would vote for the politician. Use a 5% significance level for the test. Use Table 1.
a.
Select the null and the alternative hypotheses.
H0: p = 0.50; HA: p ≠ 0.50
H0: p ≤ 0.50; HA: p > 0.50
H0: p ≥ 0.50; HA: p < 0.50
b.
Calculate the sample proportion. (Round your answer to 3 decimal places.)
Sample proportion
c.
Calculate the value of test statistic. (Round intermediate calculations to 4 decimal places. Round your answer to 2 decimal places.)
Test statistic
d.
Calculate the p-value of the test statistic. (Round intermediate calculations to 4 decimal places. Round "z" value to 2 decimal places and final answer to 4 decimal places.)
p-value
e.
What is the conclusion?
Do not reject H0; the politician is not supported by a clear majority
Do not reject H0; the politician is supported by a clear majority
Reject H0; the politician is not supported by a clear majority
Reject H0; the politician is supported by a clear majority
2)
Consider the following contingency table.
B
Bc
A
22
24
Ac
28
26
a.
Convert the contingency table into a joint probability table. (Round your intermediate calculations and final answers to 4 decimal places.)
B
Bc
Total
A
Ac
Total
b.
What is the probability that A occurs? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
c.
What is the probability that A and B occur? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
d.
Given that B has occurred, what is the probability that A occurs? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
e.
Given that Ac has occurred, what is the probability that B occurs? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
f.
Are A and B mutually exclusive events?
Yes because P(A | B) ≠ P(A).
Yes because P(A ∩ B) ≠ 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
g.
Are A and B independent events?
Yes because P(A | B) ≠ P(A).
Yes because P(A ∩ B) ≠ 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
3)
A hair salon in Cambridge, Massachusetts, reports that on seven randomly selected weekdays, the number of customers who visited the salon were 72, 55, 49, 35, 39, 23, and 77. It can be assumed that weekday customer visits follow a normal distribution. Use Table 2.
a.
Construct a 90% confidence interval for the average number of customers who visit the salon on weekdays. (Round intermediate calculations to 4 decimal places, "sample mean" and "sample standard deviation" to 2 decimal places and "t" value to 3 decimal places, and final answers to 2 decimal places.)
Confidence interval
to
b.
Construct a 99% confidence interval for the average number of customers who visit the .
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Solution to the practice test ch 8 hypothesis testing ch 9 two populationsLong Beach City College
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Elementary Statistics Practice Test 4
Module 4:
Chapter 8, Hypothesis Testing
Chapter 9: Two Populations
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Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
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How to Create Map Views in the Odoo 17 ERPCeline George
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Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
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1. Probability and Statistics
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2. Introduction to probability and statistics spring
Problems
Problem1. When spun on edge 250 times, a Belgian one-euro coin came up heads 140 times and tails 110. ‘It looks very
suspicious to me’, said Barry Blight, a statistics lecturer at the London School of Economics. ‘If the coin were
unbiased the chance of getting a result as extreme as that would be less than 7%’.
(a)Let θ be the probability of coming up heads. Consider the null hypothesis that the coin is fair, H0 : θ = 0.5. Carefully
explain how the 7% figure arises. What term describes this value in NHST? Does it correspond to a one-sided or two-
sided test?
(b) Would you reject H0 at a significance level of α = 0.1? What about α = 0.05?
(c)How many heads would you need to have observed out of 250 spins to reject at a significance of α = 0.01?
(d)(i) Fix significance at α = 0.05. Compute and compare the power of the test for the alternative hypotheses HA : θ =
0.55 and HA
j: θ= 0.6?
(ii) Sketch the pmf of each hypothesis and use it to explain the change in power observed in part (i).
(e) (i) Again fix α = 0.05. What is the smallest number of spins necessary for the test to have a power of 0.9 when HA : θ
= 0.55?
(ii) As in part (d), draw sketches and explain how they illustrate the change in power.
(f) Let HA : θ= 0.55. If we have only two hypotheses: H0 and HA and a flat prior
P (H0) = P (HA ) = 0.5, what is the posterior probability of HA given the data?
(g)What probability would you personally place on the coin being biased toward heads? Why? There is no one right
answer, we are simply interested in your thinking.
Problem 2. Polygraph analogy. In a experiment on the accuracy of polygraph tests, 140 people were instructed to tell the
truth and 140 people were instructed to lie. Testers use a polygraph to guess whether or not each person is lying. By
analogy, let’s say H0 corresponds to the testee telling the truth and HA corresponds to the testee lying.
(a) Describe the meaning of type I and type II errors in this context, and estimate their probabilities based on the
table.
Testee is truthful Testee is lying
Tester thinks testee is truthful 131 15
Tester thinks tested is lying 9 125
(b) In NHST, what relationships exist between the terms significance level, power, type 1 error,
and type 2 error?
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3. Problem 3. We perform a t-test for the null hypothesis H0 : μ = 10 at significance level α = 0.05 by means of a
dataset consisting of n = 16 elements with sample mean 11 and sample variance 4.
(a) Should we reject the null hypothesis in favor of HA : μ ƒ= 10?
(b) What if we test against HA
j: μ > 10?
Problem 4. (z-test) Suppose three radar guns are set up along a stretch of road to catch people driving over
the speed limit of 40 miles per hour. Each radar gun is known to have a normal measurement error modeled
on N (0, 52). For a passing car, let x
¯be the average of the three readings. Our default assumption for a car is
that it is not speeding.
(a)Describe the above story in the context of NHST. Are the most natural null and alternative hypotheses
simple or compound?
(b)The police would like to set a threshold on x
¯for issuing tickets so that no more that 4% of the tickets are
given in error.
(i) Use the NHST description in part (a) to help determine what threshold should they set.
(ii) Sketch a graph illustrating your reasoning in part (i).
(c) What is the power of this test with the alternative hypothesis that the car is traveling at 45 miles per hour?
How many cameras are needed to achieve a power of .9 with α = 0.04?
Problem 5. One generates a number x from a uniform distribution on the interval [0, θ]. One decides to test H0 :
θ= 2 against HA : θƒ= 2 by rejectinHg 0 if x ≤0.1 or x ≥ 1.9.
(a) Compute the probability of a type I error.
(b) Compute the probability of a type II error if the true value of θis 2.5.
Problem 6. Give a careful, precise explanation of the following XKCDs.
a.
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5. Solutions
Problem 1. (a) H0: θ = 0.5
HA: one-sided θ > 0.5, two-sided θ ƒ= 0.5.
Test statistic: x = number of heads in 250 spins. Data: x = 140.
One-sided data at least as extreme: x ≥ 140. Using R we compute the one-sided p-value is
p = P (x ≥ 140|H0) = 1 - pbinom(139, 250, 0.5)= 0.03321
The one-sided p-value computes the probability in the one-sided tail. Because our null
distribution (binomial(250, 0.5)) is symmetric, each tail in the rejection region will have probability
α/2. In this case the two-sided p-value is computed by doubling the smaller of the one sided
values. We computed the right tail p-value just above. This is the smaller of
the two p-values so our two-sided p-value is 2 × 0.03321 = 0.06642. This rounds to 0.07, so
the figure of 7% is the two-sided p-value. Note:
we could use the normal approximation
binomial(250, 0.5) ≈ N(125, 250/4)
and the z-statistic
x − 125
z = ≈ N(0, 1)
√
250/4
15
one-sided: p = P (z ≥ √
250/ 4
) ≈0.02889.
15
two-sided: p = P (|z| ≥√
250/ 4
) ≈0.05778.
(b) We saw in part (a) that the quoted 7% was a two-sided p-value. So for the rest of this problem
we’ll use two-sided tests. The exact p-value was p = 0.066. Since 0.05 < p < 0.1 we reject H0 at
significance α = 0.1 and don’t reject at α = 0.05.
−0.0
1
pro
b
0.02
0.0
5
0.5
80 100 120 140 160 180
x
The figure shows the null distribution, the α = 0.1 rejection region (blue) and the α = 0.05
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6. rejection region (orange). Notice that the data x = 140 is in the 0.1 regection region but not the
second.
(c)The problem asks us to find the rejection region for α = 0.01. We use R to find the endpoints
for the rejection region (called critical values):
criticalPoint.left = qbinom(0.005,250,0.5) - 1 = 104
criticalPoint.right = qbinom(0.995,250,0.5) + 1 = 146
Note: we added or subtracted one to the value returned by qbinom for a discrete distribution like the
binomial there is not an exact critical value. So qbinom(x, n, p) returns the smallest integer with more
than x probability in its left tail. Since the rejection region must have at most α/2 in either tail we
have to move the R answer by one towards the tail.
Conclusion: we reject for greater than or equal to 146 heads or less than or equal to 104 heads.
(d) (i) For α = 0.05 the rejection region is given by the critical points
criticalPoint.left = qbinom(0.025,250,0.5) - 1 = 109
criticalPoint.right = qbinom(0.975,250,0.5) + 1 = 141
power of HA = P (reject |HA)
= P (x ≤ 109 or x ≥ 141 |HA)
= sum(dbinom(0:109, 250, 0.55)) + sum(dbinom(141:250, 250,0.55)) = 0.35237
Likewise
power of HA
j= P (reject | HA
j)
= P (x ≤ 109 or x ≥ 141 | HA
j)
= sum(dbinom(0:109, 250, 0.6)) + sum(dbinom(141:250, 250,0.6)) = 0.88963
(ii) The two plots below show the null distribution and the distribution of HA and HA
jThe green line
below the graphs shows the rejection region. The greater power of HA
jis explained by its greater
separation from H0. Most of the probability of HA
jis over the right side of the rejection region.
0.06
0.05
0.04
0.03
0.02
0.01
0
-0.01
80 100 120 140 160 180
Distributions of H0 and HA
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7. 18.05 Problem Set 7, Spring 2014 Solutions
-0.01
0.06
0.05
0.04
0.03
0.02
0.01
0
80 100 120 140 160 180
x
Distributions of H0 and HA
j
(e) The answer is n = 1055 with HA giving a power of 0.9003.
To get this we need to compute the power for various values of n. The steps for each n are
:
1. Find the rejection region.
2. Compute the power.
Here is the R-code for one value of n. Creating the loop to check through all values of n
until we find the first with power = 0.9 is in the posted code.
theta = 0.55
n = 300;
# Find critical points for rejection region (based on theta=0.5) criticalPoint.left = qbinom(0.025,n,0.5) -
1; criticalPoint.right = qbinom(0.975,n,0.5) + 1;
rejectionRegion = c(0:criticalPoint.left,criticalPoint.right:n) power = sum(dbinom(rejectionRegion, n,
theta))
print(power)
See the two plots with part (d): power increases as n increases because the distributions
become more separated.
-0.005
0.025
0.02
0.015
0.01
0.005
0
450 500 550 600 650
x
Plot for n = 1055 of the H0 and HA : θ = 0.55 distributions. The green lines show the rejection
region.
An alternative approach approximating the exact answer with normal distributions is given at the end of these solutions.
(f) We use the usual Bayesian update table.
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8. Hypothesis prior likelihood posterior
θ = 0.5 1/2 c1(0.5)250 c2(0.5)250 = 0.14757
θ = 0.55 1/2 c1(0.55)140(0.45)110 c2(0.55)140(0.45)110 = 0.85243
1
The normalizing factor c2 =
(0.5)250 + (0.55)140(0.45)110 .
The posterior probability that θ= 0.55 is 0.85.
Note: if we used the beta(1, 1) prior on θ in [0,1] and used the data to update to a posterior of
beta(141, 111) then the 90% probability interval is [0.501, 0.611]. Although p-values and posterior
probability are measure different things. This probability interval and the 7% p-value seem similar
in the belief they convey that the coin may be biased.
(g) I’d go with the 90% probability interval discussed in part (f). It appears the coin is biased.
Problem 2 (a) Type I error is rejecting the null-hypothesis when it is indeed true. This
corresponds to thinking someone is lying when they are in fact being truthful.
140
The experiment had 9 type I errors. This is our estimate of the probability of a type I
error.
Type II error is not rejecting the null-hypothesis when it is indeed false. This corresponds to
thinking someone is telling the truth when they are in fact lying. Based on the data our
estimate of the probability of a Type II error is 15 .
140
(b) Significance = P (type I error) = P (reject H0 |H0). Power
= 1 - P (type II error) = P (reject H0 | HA).
Problem 3. (a) This is a two-sided alternative. The t-statistic is
x
¯− μ
=
1
= 2.
s/
√
n2/4
Since we have n = 16 our t statistic has 15 degrees of freedom.
We have the two-sided p-value
p = P (|t| > 2|H0) = 2*(1-pt(2,15)) = 0.063945.
Since p > α = 0.05 we don’t reject the null hypothesis.
Alternatively we could have done the problem in terms of rejection regions. We are given x
¯= 11, s2
= 4, and n = 16. The null hypothesis is μ = 10. Using x
¯as our test statistic the rejection region is
s s
(−∞, 10 − t15,0.025√
n
] ∪ [10 + t15,0.025√
n
, ∞ ) = (−∞, 8.93] ∪ [11.07, ∞ )
Here t15,0.025 means a critical value, i.e. the value with right tail probability 0.025: for
T ∼ t(15) we have P (t > t15,0.025) = 0.025.
Since 11 lies outside the rejection region, we should not reject the null-hypothesis.
(b) This is a one-sided alternative. The t-statistic is the same
x
¯− μ
=
1
= 2.
s/
√
n2/4 statisticshomeworkhelper.com
9. So we have the one-sided p-value
p = P (t > 2|H0) = 2*(1-pt(2,15)) = 0.031973.
Since p < α = 0.05 we reject the null hypothesis in favor of the alternative.
Again looking at rejection regions. We use the critical value t15,0.05 ≈ 1.753. The rejection
region for x
¯is
s
[10 + t15,0.05√
n
, ∞ ) = [10.876, ∞).
Since 11 lies inside the rejection region, we should reject the null-hypothesis in favor of
H1 : μ > 10.
Problem 4. (a) Let μ be the actual speed of a given driver. We are given that
xi ∼ N(μ, 52) ⇒ x
¯∼ N(μ, 52/3).
The most natural hypotheses are:
H0: the driver is not speeding, i.e. μ ≤ 40.
HA: the driver is speeding, i.e. μ > 40. Both
are composite.
Note: we will work with H0: μ = 40, which is simple.
(b) (i) Giving a ticket to a non-speeder is a type I error (rejecting H0 when it is true). H0 is
composite, but we can do all our computations with the most extreme value μ = 40 because the
one-sided rejection region will have its largest significance level when μ = 40.
So the null distribution is x
¯∼ N(40, 52/3). The critical value is
c0.04 = qnorm(0.96,40,5/sqrt(3)) = 45.054
5
(Equivalently c0.04 = 40 + z0.04 √ = 45.054.)
3
That is, they should issue a ticket if the average of the three guns is more than 45.054.
(ii) Here is a plot of the null distribution N(40, 52/3). The rejection probability of 0.04 is shown.
Null distribution for x_bar
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
30 35 40 45 50
(c) Power = P (rejection |HA). So to find the power we first must find the rejection region.
For n = 3 this was done in part (b): rejection region = [45.054, ∞). So
power = P (rejection |,μ = 45) = 1 - pnorm(45.054, 45, 5/sqrt(3)) = 0.493 statisticshomeworkhelper.com
10. With n cameras (guns) let’s write xn for the sample mean. The null distribution is
2
x¯n ∼ N(40, 5 /n)
The critical value, i.e. the left endpoint of the rejection region, depends on n. Also, in order to do
the computations algebraically we need to write everything in terms of standard normal values.
√ 5
c0.04 = qnorm(0.96, 40, 5/ n) = 40 + z0.04 √
n
where z0.04 is the standard normal critical value
z0.04 = qnorm(0.96, 0, 1) = 1.751.
We want
power = P (x ≥ c0.04 |μ = 45) = 0.9
Standardizing and doing some algebra we get
0.04
x − 45 c − 45 −5
P
5/
√
n
≥
5/
√
n
= 0.9 ⇒ P z ≥
5/
√
n
+ z0.04 = 0.9
−5
Thus √ + z = z . We get 5/ n
0.04 0.9
2 2
n = (z0.04 − z0.9) = (1.7507 − (−1.2816)) = 9.1945.
Setting n to be the next biggest integer we get n = 10.
We could do this all in R. The code for computing the power when n = 3 is shown below. Notice
that we don’t have to phrase everything in terms of standard normal values to compute. You only
have to change the first line to compute power for different values of n.
n = 3
mu = 40;
sigma = 5/sqrt(n); alpha = 0.04;
xcrit = qnorm(1-alpha, mu, sigma); power = 1-pnorm(xcrit, 45,
sigma)
We could now use R to compute power for increasing values of n and see which value of n
gives power more than 0.9.
Problem 5. (a) P (type I) = P (reject H0 |H0) = P (x ≤ 0.1 or x ≥ 1.9 |θ=
0.2
2) = = 0.1.
2
1.8
(b) P (type II) = P (don’t reject H0 |θ = 2.5) = P (0.1 < x < 1.9 |θ = 2.5) =
2.5
= 0.72.
Problem 6. (a) The frequentist has hypotheses H0 = ‘the sun is okay’
HA = ‘the sun has gone nova’
The experimental data from the neutrino detector says the sun has gone nova.
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11. The frequentist computes the p-value
p = P (sun gone nova |H0) = P (computer lied) = 1/36 = .027
(Note: 1/36 is really 0.028 not 0.027) Since p < 0.05 the frequentist rejects H0 in favor of
HA at significance level 0.05.
This is problematic, the p-value is the probability assuming H0 of data ’at least as extreme’ as the
data seen. How is that even defined in this case?
Ignoring the p-value we can explain the comic more clearly. The rejection region = {the
detector says yes}. The significance is 1/36 = 0.028. Therefore the frequentist rejects the
null hypothesis and concludes the sun has gone nova at significance level 0.028.
(b) The comic is pointing out the flaw of multiple testing or what’s sometimes called
data mining. (The bad type of data mining, there is also a good type.) A significance level of 0.05
means that in 20 experiments where H0 is true we’d expect to reject it once. The scientists test
20 colors. So even if no jelly bean color causes cancer there is a high probability that one of the
tests will produce a test statistic in the rejection region.
The fix is to plan on doing n tests and set the significance level for any one test to α/n. Then,
assuming H0 is true for all the tests, the probability that at least one of them will reject is roughly
n ∗α/n = α. This is called the Bonferroni correction. (Actually, because of the possibility of multiple
rejections the probabilitiy at least one will reject is less than or equal to α.
Normal approximation to problem 1 (e).
We use that binomial(n, θ) ≈ N(nθ, nθ(1 − θ)). The normal approximation introduces some error, but
we can compute n directly instead of needing to search through a sequence of possible values.
For α = 0.05 and θ= 0.5 the critical values are
√
n
c0.025 = n(0.5) + z0.025
2
c0.975 = n(0.5) − z0.025
√
n
2
So when θ= 0.55
√
n
√
n
n n
power = P x ≤
2
− z0.025 | θ = 0.55 + P x ≥
2
+ z0.025 | θ= 0.55
2 2
Standardizing assuming θ= 9.55:
z =
x − n(0.55)
J
n(0.55)(0.45)
A little algebra gives
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12. √ √
n n
n/2 − z 0.025 −n(0.55) n/2 + z 0.025 −n(0.55)
2 2
power ≈ P z ≤ J + P z ≥ J
n(0.55)(0.45) n(0.55)(0.45)
√ √
n n
−0.05n − z 0.025 −0.05n + z 0.025
2 2
= P z ≤ J + P z ≥ J
n(0.55)(0.45) n(0.55)(0.45)
For n large the left hand probability is essentially 0. So to get power = 0.9 we need
√
n
−0.05n + z 0.025
2
P z ≥ J = 0.9
n(0.55)(0.45)
That is √
n
−0.05n + 2 z0.025
J
n(0.55)(0.45)
= z0.9
Using z0.025 = 1.96 and z0.9 = −1.2816 and solving for n we get n = 1047, which is very close to the
exact answer of 1055.
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