Evan is going to invest $2,800 and leave it in an account for 12 years. Assuming the
2 answers:
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Answer:
50
Step-by-step explanation:
Level of significance, a = 0.01
Type II error probability, b =0.05
From the z-table:
the critical value at 1% level of significance, Zα = Z0.01 = 2.33
the critical value at 5% probability, Zβ = Z0.05 = 1.645
The critical value of z can be obtained from the standard normal table using the desired level of significance and the tail of test.
The critical value tells the number of standards deviations away is the result from the mean.
Probability of type I error denoted by a
Probability of type II error denoted by b.
Type I error is to falsely infer the existence of something that is not there, while a type II error is to falsely infer the absence of something that is.
From the given information,
a=0.01, b=0.05, o1 = o2 =0.05, Dο = 0, D' = 0.04
The sample size is calculated as,
n =
=
= 49.38
which is 50 [Rounded to next integer]