asmt3_summer2011 - UNIVERSITY OF VICTORIA Economics 246:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
UNIVERSITY OF VICTORIA August 5, 2011 Economics 246: Statistical Inference Summer 2011 Assignment #3 Due: Friday 12 th of August, 2011, 12 noon. (In the box marked “Econ 246" near the Economics Department Office.) Hand in your EViews printout. Question 1: (3 marks; 1 each) State whether each of following statements is true or false, and explain why. (i) The probability of the Type I error and the probability of the Type II error always add to 1. (ii) Increasing the value of α increases the value of β . (iii) The smaller the specified value of is, the larger the rejection region. Question 2: (3 Marks; 1 each) An automobile manufacturer must decide whether the design of its seatbelts in their newest vehicle is safe. The null hypothesis is “the design of the seatbelt is safe.” (i) What is the alternative hypothesis? (ii) Explain what the Type I and Type II errors are in this situation. (iii) Which type of error is more serious?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

asmt3_summer2011 - UNIVERSITY OF VICTORIA Economics 246:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online