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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=14𝑋𝑖5∑_{i=1}^4 𝑋_𝑖 ≥ 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.