STATS 401 Study Guide - Midterm Guide: Null Hypothesis, Standard Deviation, Test Statistic
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You should provide your code (if any) and the numerical answer to each question, along with any written explanation that is requested: suppose we observe paired data of the following form: Xi 1 2 3 4 5 6 7 . Yi 1 3 3 5 5 7 7 . Solution: among the di erences di there are n ones and n zeros, so d = 1/2, and. 2n 1 = 2. 33 and solving for n yields n = 3. q n/(4n 2). Setting: suppose we plan to carry out a screening study to detect fraudulent loan applications at a bank. We have developed a test such that only 1% of legitimate loan applications are falsely said to be fraudulent. You should use the normal approximation to get your answer. Solution: the number of false positives s has mean 10 and standard deviation. P (s < 5) = p (z < (5 10)/3. 15)
