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2. Test if the stock price increases on more than 60% of the trading days.
H0: = 7; HA: 7
5. I suspect that your 10-inch pizzas are, on average, less than 10 inches in
size.
6. I will have to fine the company since its tablets do not contain an average
of 250 mg of ibuprofen as advertised.
7. Lie Detector
A polygraph (lie detector) is an instrument used to determine if the
individual is telling the truth.
These tests are considered to be 95% reliable. In other words, if an
individual lies, there is a 0.95 probability that the test will detect a lie.
Let there also be a 0.005 probability that the test erroneously detects a
lie even when the individual is actually telling the truth.
Consider the null hypothesis, "the individual is telling the truth," to
answer the following questions.
a. What is the probability of Type I error?
b. What is the probability of Type II error?
8. Blood Test
The screening process for detecting a rare disease is not perfect.
Researchers have developed a blood test that is considered fairly
reliable.
It gives a positive reaction in 98% of the people who have that
disease.
However, it erroneously gives a positive reaction in 3% of the people
who do not have the disease.
Answer the following questions using the null hypothesis as "the
individual does not have the disease."
a. What is the probability of Type I error?
b. What is the probability of Type II error?
9. Illegitimate Children
Type I: 94%,
Type II: 4%
Thank you