The dean of a business college in the Midwest claims that he can correctly ident

Question

The dean of a business college in the Midwest claims that he can correctly identify whether a student is a finance major or a music industry management major by the way the student dresses. Suppose in actuality that he can correctly identify finance majors 84% of the time, while 16% of the time he mistakenly identifies a music industry management major as a finance major. Presented with one student and asked to identify the major of this student (who is either a finance or music industry management major), the dean considers this to be a hypothesis test with the null hypothesis being that the student is a finance major and the alternative that the student is a music industry management major. Which of the following statements is an example of power of the test?

A. The probability of saying that the student is a music industry management major when in fact the student is a music industry management major.

B. The probability of saying that the student is a music industry management major when in fact the student is a finance major.

C. The probability of saying that the student is a finance major when in fact the student is a finance major.

D. The probability of saying that the student is a finance major when in fact the student is a music industry management major.

Explanation / Answer

Ans:

Type II Error - fail to reject the null when it is false (probability = )

Correct Decision (probability = 1 - )

Power= 1 -

Power is the probability of rejecting null hypothesis,when it is actually false.

null hypothesis : the student is a finance major.

alternative hypothesis: the student is a music industry management major.

Null hypothesis is student is a finanace major, and we are rejecting it in favor of alternative hypothesis i.e student is a music industry management major.That means we are concluding that student is a music industry management major,when in fact student is a music industry management major(i.e null hypothesis is actually false and alternative hypothesis is true)

So,option A is correct.

The probability of saying that the student is a music industry management major when in fact the student is a music industry management major.

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