In: Statistics and Probability
Suppose that X binomial (100, θ). Consider the test that rejects H0 : θ = 0.4 in favor of Ha: θ ≠ 0.4 for |X − 40| > 10. Use the normal approximation to answer the following:
(a) What is the level of significance, α?
(b) Derive the power function and graph it as a function of θ.