Tutorial solutions week 9

# Interpret this value the p value is the probability

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Unformatted text preview: . 5 (c) What is the p-value associated with the test statistic used in the part (a) test? Interpret this value. The p-value is the probability of obtaining a test statistic more extreme than the realized value, assuming the null hypothesis is true. The lower the p -value, the greater is the evidence for rejection of the null hypothesis. In this case it is very unlikely to find a sample mean as extreme as \$265,000 given a population mean of \$250,000. (d) Define the type I and II errors in the context of the part (a) test. Type I Error: Concluding that housing price is more than \$250,000, while it is really \$250,000. Type II Error: Not being able to reject the claim that housing price is \$250,000, while it is really more. 3. What effect does increasing the sample size have on the outcome of a hypothesis test? Explain your answer using the example of a one -tail test concerning the mean of a normally distributed population with known variance. (It is expected that students will find this question difficult) Suppose an upper tail test Under ̅ The point ( ) on N(0,1) corresponds to the point distribution of ̅ . ̅ ⁄√ ̅ √ on...
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## This homework help was uploaded on 04/08/2014 for the course ECON 1203 at University of New South Wales.

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