In: Statistics and Probability
I have four socks in a drawer; each is either black or white.
Suppose that my null hypothesis is H0 : There are exactly two black socks. We decide on the following test: we take out two socks at random (all at once and without replacement). We reject H0 if the two socks are the same color. [Note: this test doesn’t make a whole lot of sense; this is just to practice the ideas.]
a) What is the significance level of this test? Explain.
b) If there are actually three black socks, what is the power of this test? Explain.