Statistics II20815 marksNumerical: hypothesis test proportiontest for single proportion
Discuss the concept of level of significance in hypothesis testing. A manufacturer of laptop provides a particular model in one of three colors. Of the first 100 laptops sold, it is noted that 80 were the first color. Can you conclude that more than two third of all the customers have a preference f
Discuss the concept of level of significance in hypothesis testing. A manufacturer of laptop provides a particular model in one of three colors. Of the first 100 laptops sold, it is noted that 80 were the first color. Can you conclude that more than two third of all the customers have a preference for the first color? Use 5% level of significance. [5]
The level of significance (denoted α) is the probability of rejecting the null hypothesis $H0$ when it is actually true. It is the maximum acceptable probability of committing a Type I error. - Fixed in advance of the test (typically $1%$, $5%$, or $10%$). - At $5%$ significance, we accept a ...