Intro Stats, Books a la Carte Edition (5th Edition)
5th Edition
ISBN: 9780134210285
Author: Richard D. De Veaux, Paul Velleman, David E. Bock
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 16, Problem 28E
Alzheimer’s Testing for Alzheimer’s disease can be a long and expensive process, consisting of lengthy tests and medical diagnosis. A group of researchers (Solomon et al., 1998) devised a 7-minute test to serve as a quick screen for the disease for use in the general population of senior citizens. A patient who tested positive would then go through the more expensive battery of tests and medical diagnosis. The authors reported a false-positive rate of 4% and a false-negative rate of 8%.
- a) Put this in the context of a hypothesis test. What are the null and alternative hypotheses?
- b) What would a Type I error
mean ? - c) What would a Type II error mean?
- d) Which is worse here, a Type I or Type II error? Explain.
- e) What is the power of this test?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
We consider the one-period model studied in class as an example. Namely, we assumethat the current stock price is S0 = 10. At time T, the stock has either moved up toSt = 12 (with probability p = 0.6) or down towards St = 8 (with probability 1−p = 0.4).We consider a call option on this stock with maturity T and strike price K = 10. Theinterest rate on the money market is zero.As in class, we assume that you, as a customer, are willing to buy the call option on100 shares of stock for $120. The investor, who sold you the option, can adopt one of thefollowing strategies: Strategy 1: (seen in class) Buy 50 shares of stock and borrow $380. Strategy 2: Buy 55 shares of stock and borrow $430. Strategy 3: Buy 60 shares of stock and borrow $480. Strategy 4: Buy 40 shares of stock and borrow $280.(a) For each of strategies 2-4, describe the value of the investor’s portfolio at time 0,and at time T for each possible movement of the stock.(b) For each of strategies 2-4, does the investor have…
Negate the following compound statement using De Morgans's laws.
Negate the following compound statement using De Morgans's laws.
Chapter 16 Solutions
Intro Stats, Books a la Carte Edition (5th Edition)
Ch. 16.2 - An experiment to test the fairness of a roulette...Ch. 16.2 - Prob. 2JCCh. 16.2 - Prob. 3JCCh. 16.3 - Prob. 4JCCh. 16.3 - Prob. 5JCCh. 16.3 - Prob. 6JCCh. 16.3 - Prob. 7JCCh. 16.4 - Remember the bank thats sending out DVDs to try to...Ch. 16.4 - Prob. 9JCCh. 16.4 - For the bank, which situation has higher power: a...
Ch. 16 - True or false Which of the following are true? If...Ch. 16 - False or true Which of the following are true? If...Ch. 16 - P-values Which of the following are true? If...Ch. 16 - Prob. 4ECh. 16 - Prob. 5ECh. 16 - Prob. 6ECh. 16 - Prob. 7ECh. 16 - More critical values For each of the following...Ch. 16 - Prob. 9ECh. 16 - Significant again? A new reading program may...Ch. 16 - SECTION 16.4 11. Errors For each of the following...Ch. 16 - More errors For each of the following situations,...Ch. 16 - CHAPTER EXERCISES 13. P-value A medical researcher...Ch. 16 - Prob. 14ECh. 16 - Alpha A researcher developing scanners to search...Ch. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Is the Euro fair? Soon after the Euro was...Ch. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25ECh. 16 - Prob. 26ECh. 16 - Prob. 27ECh. 16 - Alzheimers Testing for Alzheimers disease can be a...Ch. 16 - Prob. 29ECh. 16 - Quality control Production managers on an assembly...Ch. 16 - Cars, again As in Exercise 29, state regulators...Ch. 16 - Prob. 32ECh. 16 - Equal opportunity? A company is sued for job...Ch. 16 - Stop signs Highway safety engineers test new road...Ch. 16 - Prob. 35ECh. 16 - Ads A company is willing to renew its advertising...Ch. 16 - Prob. 37ECh. 16 - Prob. 38ECh. 16 - Prob. 39ECh. 16 - Catheters During an angiogram, heart problems can...Ch. 16 - Prob. 41ECh. 16 - Prob. 42ECh. 16 - Prob. 43ECh. 16 - Faulty or not? You are in charge of shipping...Ch. 16 - Prob. 45ECh. 16 - Prob. 46ECh. 16 - Prob. 47ECh. 16 - Prob. 48E
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Question 6: Negate the following compound statements, using De Morgan's laws. A) If Alberta was under water entirely then there should be no fossil of mammals.arrow_forwardNegate the following compound statement using De Morgans's laws.arrow_forwardCharacterize (with proof) all connected graphs that contain no even cycles in terms oftheir blocks.arrow_forward
- Let G be a connected graph that does not have P4 or C3 as an induced subgraph (i.e.,G is P4, C3 free). Prove that G is a complete bipartite grapharrow_forwardProve sufficiency of the condition for a graph to be bipartite that is, prove that if G hasno odd cycles then G is bipartite as follows:Assume that the statement is false and that G is an edge minimal counterexample. That is, Gsatisfies the conditions and is not bipartite but G − e is bipartite for any edge e. (Note thatthis is essentially induction, just using different terminology.) What does minimality say aboutconnectivity of G? Can G − e be disconnected? Explain why if there is an edge between twovertices in the same part of a bipartition of G − e then there is an odd cyclearrow_forwardLet G be a connected graph that does not have P4 or C4 as an induced subgraph (i.e.,G is P4, C4 free). Prove that G has a vertex adjacent to all othersarrow_forward
- We consider a one-period market with the following properties: the current stock priceis S0 = 4. At time T = 1 year, the stock has either moved up to S1 = 8 (with probability0.7) or down towards S1 = 2 (with probability 0.3). We consider a call option on thisstock with maturity T = 1 and strike price K = 5. The interest rate on the money marketis 25% yearly.(a) Find the replicating portfolio (φ, ψ) corresponding to this call option.(b) Find the risk-neutral (no-arbitrage) price of this call option.(c) We now consider a put option with maturity T = 1 and strike price K = 3 onthe same market. Find the risk-neutral price of this put option. Reminder: A putoption gives you the right to sell the stock for the strike price K.1(d) An investor with initial capital X0 = 0 wants to invest on this market. He buysα shares of the stock (or sells them if α is negative) and buys β call options (orsells them is β is negative). He invests the cash balance on the money market (orborrows if the amount is…arrow_forwardDetermine if the two statements are equivalent using a truth tablearrow_forwardQuestion 4: Determine if pair of statements A and B are equivalent or not, using truth table. A. (~qp)^~q в. р л~9arrow_forward
- Determine if the two statements are equalivalent using a truth tablearrow_forwardQuestion 3: p and q represent the following simple statements. p: Calgary is the capital of Alberta. A) Determine the value of each simple statement p and q. B) Then, without truth table, determine the va q: Alberta is a province of Canada. for each following compound statement below. pvq р^~q ~рл~q ~q→ p ~P~q Pq b~ (d~ ← b~) d~ (b~ v d) 0 4arrow_forward2. Let X be a random variable. (a) Show that, if E X2 = 1 and E X4arrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
Recommended textbooks for you
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Hypothesis Testing - Solving Problems With Proportions; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=76VruarGn2Q;License: Standard YouTube License, CC-BY
Hypothesis Testing and Confidence Intervals (FRM Part 1 – Book 2 – Chapter 5); Author: Analystprep;https://www.youtube.com/watch?v=vth3yZIUlGQ;License: Standard YouTube License, CC-BY