Question: Faulty or not? You are in charge of shipping computers to customers. You learn that a faulty disk drive was put into some of the machines. There's a simple test you can perform, but it's not perfect. All but 4% of the time, a good disk drive passes the test, but unfortunately, 35% of the bad disk drives pass the test, too. You have to decide on the basis of one test whether the disk drive is good or bad. Make this a hypothesis test.
a) What are the null and alternative hypotheses?
b) Given that a computer fails the test, what would you decide? What if it passes the test?
c) How large is for this test?
d) What is the power of this test? (Hint: How many possibilities are in the alternative hypothesis?)