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In: Statistics and Probability

Suppose that X binomial (100, θ). Consider the test that rejects H0 : θ = 0.4...

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.

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