Test decisions and errors
Problem
A two-sided test rejects when . For an observed , state the decision and relate the rule to p-values, Type I error, Type II error, and power. Separately, compute the Pearson chi-square statistic for observed counts against expected counts , give its degrees of freedom, and state what a likelihood-ratio test compares.
Reveal answer or reference solution
Reject ; the two-sided p-value is below . The rule has Type I error under its assumptions. Type II error is failure to reject under a particular alternative, and power is one minus that error probability.
The chi-square statistic is
with one degree of freedom. A likelihood-ratio test compares the best likelihood under the null with the best likelihood under the larger alternative model.
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