A major agricultural company is testing a newvariety of wheat to determine whether it is more resistant tocertain insects than is the current wheat variety. The pro-portion of a current wheat crop lost to insects is 4%. Thus,the company wishes to test the following hypotheses:

H0:p=0.04

H0:p<0.04

Which of the following significance levels and sample sizes

would lead to the highest power for this test?

(a)n=200andα=0.01

(b)n=400andα=0.05

(c)n=400andα=0.01

(d)n=500andα=0.01

(e)n=500andα=0.05

Short Answer

Expert verified

e)n=500,α=0.05

Step by step solution

01

Given information

we have been given five options from which one is correct and the correct is (e)

02

Simplify

While it is possible to derive the power of a given function

n=500andα=0.05

The higher the sample size, the more power to detect differences.

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(a) H0:β=0versusHa:β>0..

(b) H0:β=0versusHa:β<0

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(e)9220

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