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Derive a method for determining the appropriate sample size to take for a statistical test designed to test \(\mathrm{H}_{0}: \sigma^{2}=\sigma_{1}^{2} \quad\) against \(\mathrm{H}_{1}: \sigma^{2}>\sigma_{2}^{2}\) for specified levels of \(\alpha\), the type I error, and \(\beta\), the type II error, and where \(\sigma_{2}^{2}>\sigma_{1}^{2}\). Apply this method when \(\sigma_{1}=.1225, \sigma_{2}=.2450, \alpha=.01\) and \(\beta=.01 .\)

Short Answer

Expert verified
Using the Chi-squared Distribution for the null and alternative hypothesis, we first compute the non-centrality parameter \(\lambda = (n-1) \frac{\sigma_{2}^{2}}{\sigma_{1}^{2}} - (n - 1)\) and compare quantiles of the non-central chi-square distribution with the given \(\alpha\) and \(\beta\) values. With \(\sigma_{1}=0.1225, \sigma_{2}=0.2450, \alpha=0.01\) and \(\beta=0.01\), we iteratively find the smallest sample size 'n' that satisfies the inequality \(\chi_{(1-\alpha,n-1)}^{2} \le \chi_{(\beta,n-1,\lambda)}^{2}\), determining the appropriate sample size for the statistical test.

Step by step solution

01

Chi-squared Distribution for Variance

We know that for hypotheses involving variance, the test statistic follows a Chi-square (\(\chi^{2}\)) distribution. Given the two hypothesis \(\mathrm{H}_{0}: \sigma^{2}=\sigma_{1}^{2}\) and \(\mathrm{H}_{1}: \sigma^{2}>\sigma_{2}^{2}\), we will focus on the Chi-Square distribution for the test statistic. Let \(n\) be the sample size and \(X\) be the test statistic.
02

Define Type I and Type II errors

Type I error (\(\alpha\)) is the conditional probability of rejecting \(\mathrm{H}_{0}\) when in fact, \(\mathrm{H}_{0}\) is true, given by \(P( X >\chi_{(1-\alpha,n-1)}^{2} \mid \mathrm{H}_{0})\). Type II error (\(\beta\)) is the conditional probability of failing to reject \(\mathrm{H}_{0}\) when in fact, \(\mathrm{H}_{1}\) is true, given by \(P( X \le\chi_{(1-\alpha,n-1)}^{2} \mid \mathrm{H}_{1})\).
03

Calculate the Non-centrality Parameter

To find the probability of making Type II error, we need to compute the non-centrality parameter \(\lambda\) given by: \[ \lambda = (n-1) \frac{\sigma_{2}^{2}}{\sigma_{1}^{2}} - (n - 1) \] We will find the non-centrality parameter \(\lambda\) using the given values of \(\sigma_{1}\) and \(\sigma_{2}\).
04

Determine the appropriate sample size

We need to find the smallest sample size 'n' such that the type I error and type II error are below the given values of \(\alpha\) and \(\beta\). We can make use of the non-central chi-square distribution and its quantiles, \(\chi_{(1-\alpha,n-1)}^{2}\) and \(\chi_{(\beta,n-1,\lambda)}^{2}\) to find the appropriate sample size 'n'. The condition we need to satisfy is: \[ \chi_{(1-\alpha,n-1)}^{2} \le \chi_{(\beta,n-1,\lambda)}^{2} \] We will need to iterate over different values of sample size 'n' until this condition is satisfied.
05

Apply the method to find the sample size

Given \(\sigma_{1}=0.1225, \sigma_{2}=0.2450, \alpha=0.01\) and \(\beta=0.01\). First, let us find the non-centrality parameter \(\lambda\): \(\lambda = (n-1)*\frac{0.2450^2}{0.1225^2} - (n - 1)\) Next, we will iteratively find the smallest sample size 'n' that satisfies the condition mentioned in Step 4. We will compare the quantiles of the non-central chi-square distribution with the given \(\alpha\) and \(\beta\) values. After iterating through different values of sample size 'n', we find the smallest number that satisfies the given condition, and hence the appropriate sample size for this problem.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Chi-squared Distribution
The Chi-squared distribution is a probability distribution often used in statistics, especially in hypothesis testing for variance. It describes the distribution of the sum of the squares of independent standard normal random variables. In the context of variance, when we are testing hypotheses like \(H_0: \sigma^2 = \sigma_1^2\) and \(H_1: \sigma^2 > \sigma_2^2\), the test statistic follows a Chi-squared distribution.
This characteristic helps us determine how likely we are to observe particular samples under the null hypothesis. The shape of the Chi-squared distribution depends on the degrees of freedom, often determined by sample size \(n\) minus the number of parameters estimated within the dataset. The Chi-squared distribution grows more symmetric as the degrees of freedom increase.
For our sample size determination, knowing the behavior of the Chi-square distribution in these contexts is crucial for deciding when to reject the null hypothesis.
Type I Error
Type I error, denoted as \(\alpha\), reflects the probability of rejecting the null hypothesis \(H_0\) when it is actually true. This is essentially a false positive. In hypothesis testing, controlling Type I error is crucial because it helps maintain the reliability of conclusions drawn from statistical data.
For example, if \(\alpha\) is set to 0.01, it indicates a willingness to accept a 1% probability of incorrectly rejecting a true null hypothesis. This threshold is a decision point for the test statistic based on the Chi-square distribution's critical value.
By understanding Type I error, researchers ensure that the results are not due to random fluctuations, thereby supporting statistically significant results with greater confidence.
Type II Error
Type II error, represented by \(\beta\), is the probability of failing to reject the null hypothesis \(H_0\) when the alternative hypothesis \(H_1\) is true. In simple terms, it refers to a false negative. While Type I error is about avoiding false positives, controlling Type II error is crucial to ensure that we are correctly identifying true effects.
If \(\beta\) equals 0.01, it signifies a 1% risk that the test will not detect a true effect or discrepancy. Understanding and controlling \(\beta\) helps in achieving adequate statistical power, which gauges the test's ability to accurately detect an effect when there is one.
Balancing \(\alpha\) and \(\beta\) is vital in statistical tests to optimize the effectiveness of decision-making based on observed data.
Non-central Chi-square Distribution
The non-central Chi-square distribution extends the general Chi-square distribution to accommodate cases where observations or experimental conditions introduce new variables. This extension is essential when dealing with the alternative hypothesis in a sample size determination problem.
The distribution incorporates a non-centrality parameter \(\lambda\), which captures the shift from the central Chi-square distribution due to specific experimental effects or conditions. When testing against \(H_1: \sigma^2 > \sigma_2^2\), \(\lambda\) helps in calculating the probability of Type II error \(\beta\).
For sample size calculations, we use the non-central Chi-square distribution to find the appropriate sample size \(n\). This ensures that both Type I and Type II errors remain under their respective thresholds, maintaining the test's reliability and sensitivity. Understanding how \(\lambda\) affects the distribution helps researchers tailor their tests to the specific conditions of their study.

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Most popular questions from this chapter

An official of a trade union reports that the mean yearly wage is \(\$ 8,000\). A random sample of 100 employees in the union produced a mean of \(\$ 7,875\) with a standard deviation of \(\$ 1,000\). Test the null hypothesis at the 05 level of significance that the mean wage is \(\$ 8,000\) against the alternate hypothesis that the wage is greater than or less than \(\$ 8000\)

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