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Power A drug manufacturer claims that fewer than 10% of patients who take its new drug for treating Alzheimer's disease will experience nausea. To test this claim, a significance test is carried out of

H0:p=0.10Ha:p<0.10

You learn that the power of this test at the 5 % significance level against the alternative p=0.08 is 0.64.

(a) Explain in simple language what "power =0.64" means in this setting.

(b) You could get higher power against the same alternative with the same α by changing the number of measurements you make. Should you make more measurements or fewer to increase power? Explain.

(c) If you decide to use α=0.01in place of α=0.05, with no other changes in the test, will the power increase or decrease? Justify your answer.

(d) If you shift your interest to the alternative p= 0.07 with no other changes, will the power increase or decrease? Justify your answer.

Short Answer

Expert verified

a. It means rejecting the null hypothesis if it's false

b. make more measurements

c. decrease

d. increase

Step by step solution

01

Given Information

Significance test

H0:p=0.10Ha:p<0.10

Significance level =5%and power =role="math" localid="1652846359690" 0.64

02

Explanation Part (a)

Given,

H0:p=0.10Ha:p<0.10

power = 0.64=64%

alternative p = 0.08

Hence the "power =0.64" means rejecting the null hypothesis if it's false.

03

Explanation Part (b)

Given,

H0:p=0.10Ha:p<0.10

power = 0.64=64%

alternative p = 0.08

Hence to build the power, then you require more data about the information, which can be gotten by expanding the quantity of estimation. Accordingly, we make more measurements to increase the power.

04

Explanation Part (c)

Given,

If we decide to useα=0.01in place of α=0.05, with no other changes in the test then the power will decrease as the probability of type I error decreases and the probability of type II error increases.

Now,

Power=1−β(probability of type II error)

Hence power decreases asβincreases.

05

Explanation Part (d)

If we shift your interest to the alternative p= 0.07with no other changes then the power will increase as it is further from the null hypothesis p =0.10

Hence the power increases.

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