Discussion:
Q: There are two boxes, Box A and Box B. Box A has 40 tags with the number 1, 50 tags with the number 10, and 10 tags with the number 100. Box B has 40 tags with the number 100, 50 tags with the number 10, and 10 tags with the number 1. A box is picked at random and exactly one tag is drawn at random from that box. You do not know if the box picked was Box A or Box B.
a) State the null and alternative hypotheses.
b) What is the direction of extreme?
c) If the decision rule is to reject Ho if a tag value of 100 is obtained, what is the significance level? What does the significance level represent?
d) What is the numerical value of ß. What does ß represent?
e) If the tag drawn is 10, what is the numerical value of the p-value. What is your decision.