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We expect two proportions to be about 0.20 and 0.30, and we want an 80% chance of detecting a difference between them using a two-sided 0.05 level test.
a. Assuming equal sample sizes, how large should they be?
b. How does the sample size change if we want a 90% power?
c. How does the sample size change if we use a two-sided 0.01 level test (still keeping 80% power)?
d. How does the sample size change if we want to test a difference between 0.30 and 0.40 (still keeping 80% power, two-sided 0.05 level test)?
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At a 0.025 significance level using the critical value approach, test to see if the % error is higher than the industry standard. Clearly state your hypothesis and conclusions.
It provides a range of values, any of which is a good guess at the possible value of the sample mean.
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