A proportion \(p\) of letters sent by a company are incorrectly addressed and if \(p\) is thought to be greater than 0.05 then action is taken.
Using H\(_0\): \(p = 0.05\) and H\(_1\): \(p > 0.05\), a manager from the company takes a random sample of 40 letters and rejects H\(_0\) if the number of incorrectly addressed letters is more than 3.
- Find the size of this test.
[2]
- Find the probability of a Type II error in the case where \(p\) is in fact 0.10
[2]
Table 1 below gives some values, to 2 decimal places, of the power function of this test.
| \(p\) | 0.075 | 0.100 | 0.125 | 0.150 | 0.175 | 0.200 | 0.225 |
| Power | 0.35 | \(s\) | 0.75 | 0.87 | 0.94 | 0.97 | 0.99 |
Table 1
- Write down the value of \(s\).
[1]
A visiting consultant uses an alternative system to test the same hypotheses. A sample of 15 letters is taken. If these are all correctly addressed then H\(_0\) is accepted. If 2 or more are found to have been incorrectly addressed then H\(_0\) is rejected. If only one is found to be incorrectly addressed then a further random sample of 15 is taken and H\(_0\) is rejected if 2 or more are found to have been incorrectly addressed in this second sample, otherwise H\(_0\) is accepted.
- Find the size of the test used by the consultant.
[3]
Question 4 continues on page 8
\includegraphics{figure_1}
- On Figure 1 draw the graph of the power function of the manager's test.
[2]
- State, giving your reasons, which test you would recommend.
[2]