An engineer wishes to design a test to find the mean resistance of a wire. He wants to determine a sample size so that if the mean is different than 0.8 ohms (say, in reality the mean is more than 0.15 ohms different from 0.8 in either direction), the test will detect this with high probability, like 90%. The standard deviation is known to be 0.9 and the significance level of the test 0.08. What is the required sample size? 110.25

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An engineer wishes to design a test to find the mean resistance of a wire. He wants to determine a
sample size so that if the mean is different than 0.8 ohms (say, in reality the mean is more than 0.15
ohms different from 0.8 in either direction), the test will detect this with high probability, like 90%.
The standard deviation is known to be 0.9 and the significance level of the test 0.08.
What is the required sample size?
110.25
X
Transcribed Image Text:An engineer wishes to design a test to find the mean resistance of a wire. He wants to determine a sample size so that if the mean is different than 0.8 ohms (say, in reality the mean is more than 0.15 ohms different from 0.8 in either direction), the test will detect this with high probability, like 90%. The standard deviation is known to be 0.9 and the significance level of the test 0.08. What is the required sample size? 110.25 X
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