Question
Statistics Question on Testing of Hypotheses
Let X1, X2, X3, X4 be a random sample from a Poisson distribution with unknown mean λ > 0. For testing the hypothesis
H0 : λ = 1 against H1 : λ = 1.5,
let β denote the power of the test that rejects H0 if and only if ∑i=14Xi≥5. Then which one of the following statements is true ?
A
β > 0.80
B
0.75 < β ≤ 0.80
C
0.70 < β ≤ 0.75
D
0.65 < β ≤ 0.70
Answer
0.70 < β ≤ 0.75
Explanation
Solution
The correct option is (C) : 0.70 < β ≤ 0.75.