Design a decision rule to test the hypothesis that a coin is fair if we take...
Design a decision rule to test the hypothesis that a coin is fair if we take a sample of 64 tosses of the coin and use significance levels of:
(a) 0.05
(b) 0.01
Please provide all steps in solution.
Homework Answers
a)
Two tailed critical value at 0.05 level are -1.96 , 1.96
Decision rule = reject H0 if z < -1.96 or z > 1.96
b)
Two tailed critical value at 0.01 level are -2.576 , 2.576
Decision rule = reject H0 if z < -2.576 or z > 2.576
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