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Unformatted text preview: (b) Find a way to test the hypothesis that μ = 0 assuming that σ 2 is not known and must be estimated. Explain carefully what you have done. Q3 Suppose that X is a binomial random variable with p = . 4 and n = 50. (a) Find a way to approximate the probability that X = 22. Justify your approach. Have you used a continuity correction? Why or why not? (b) Use another approach to estimate the probability that X < 21. 1 Q4 To reduce theft, suppose that a company proposes to screen its workers with a lie-detector test that is accurate 90% of the time (for guilty subjects and for innocent subjects). The company would ﬁre all of the workers who failed the test. Suppose that 5% of the workers steal from time to time. (a) Of the ﬁred workers, what proportion would actually be innocent. (b) Of the remaining workers who were not ﬁred, what proportion will still steal from time to time. 2...
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- Summer '09
- Probability theory, theft, 5%, 90%