Two coins In a drawer are two coins. They look thesame, but one coin produces heads 90% of the time whenspun while the other one produces heads only 30% ofthe time. You select one of the coins. You are allowed tospin it once and then must decide whether the coin is the90%- or the 30%-head coin. Your null hypothesis is thatyour coin produces 90% heads.a) What is the alternative hypothesis?b) Given that the outcome of your spin is tails, whatwould you decide? What if it were heads?c) How large is a in this case?d) How large is the power of this test? (Hint: How manypossibilities are in the alternative hypothesis?)e) How could you lower the probability of a Type I errorand increase the power of the test at the same time?
Two coins In a drawer are two coins. They look the
same, but one coin produces heads 90% of the time when
spun while the other one produces heads only 30% of
the time. You select one of the coins. You are allowed to
spin it once and then must decide whether the coin is the
90%- or the 30%-head coin. Your null hypothesis is that
your coin produces 90% heads.
a) What is the alternative hypothesis?
b) Given that the outcome of your spin is tails, what
would you decide? What if it were heads?
c) How large is a in this case?
d) How large is the power of this test? (Hint: How many
possibilities are in the alternative hypothesis?)
e) How could you lower the probability of a Type I error
and increase the power of the test at the same time?
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