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MIME 4100 Hwk 5 Due 2/26/2014 1. Study section C6 of the book and your class notes 2/17/2014 2. Complete the statements below: a) The objective of a hypothesis test is to _____________________________ b) Type I error is _________________________________________ c) Type II error is ________________________________________ d) p-value from a hypothesis test is the probability of ______________________ e) If the following decision rule is used to test the null hypothesis, then the probability of type I error is equal to _________________ : if p - value of the test do not reject null hypothesis if p - value of the test reject null hypothesis f) A very small p-value (i.e. 10-3) in a hypothesis test means that there is strong evidence for _____________ 3. a) Test hypothesis that the probability of failure of failure of an electronic circuit is 0.01. We tested 500 nominally identical circuits and observed one failure. Use a significance level 0.1. b) Is this test a one-tailed or two tailed test? c) Find the probability that you could reject a hypothesis that is actually true in this test. Hint: The test statistic for a sample proportion is, Pˆ ( A) P ( A) ˆ Pˆ ( A) Pˆ ( A){1 Pˆ ( A)} is the nA standard deviation of the sample proportions. The statistic in Equation (1) follows the standard normal distribution. where Pˆ ( A) is the observed proportions, and ˆ ˆ P ( A) (1) 4. We inspected two shipments consisting of nA=334 and nB=116 ball bearings from two factories. We found xA=14 defectives in the first shipment and xB=36 in the second. Test the null hypothesis that the proportions of defective bearings from the two factories are equal. Use a level of significance equal to 0.05. Hint: The test statistic for two sample proportions is, Pˆ ( A) Pˆ ( B) ˆ 2ˆ P( A) ˆ 2ˆ (2) P( B) where Pˆ ( A) and Pˆ ( B) are the observed proportions, and ˆ ˆ P ( A) Pˆ ( A){1 Pˆ ( A)} nA Pˆ ( B){1 Pˆ ( B)} the standard deviations of these proportions. The statistic in nB Equation (2) follows the standard normal distribution. ˆ ˆ P( B) 5. Answer the following true-false questions: a) The smaller the p-value the more likely it is to reject the null hypothesis. (T-F) b) The probability of type I error is equal to the level of significance, . (T-F) c) Type I error occurs when we fail to reject a truly false hypothesis. (T-F) d) When we increase the sample size we reduce the probability of Type II error. (T-F) e) A hypothesis test is easy to pass when the sample size is small. (T-F) f) If the alternative hypothesis is that the mean values of two populations are different, 1 2 , then the test is called two-tailed test. (T-F)