Test for the null hypothesis with significance level

Reference no: EM131083845

When a pacemaker factory is operating normally (the null hypothesis H0), a randomly selected pacemaker fails a test with probability q₀ = 10^-4. Each day, an inspector randomly tests pacemakers. Design a significance test for the null hypothesis with significance level α = 0.01. Note that testing pacemakers is expensive because the pacemakers that are tested must be discarded. Thus the significance test should try to minimize the number of pacemakers tested.

Reference no: EM131083845

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