Hi,
I have some problem with understanding the meaning of power. I would be more then happy if someone could help me explain this problem below.
A manufacturing process wants the proportion of defective units to be as highest 10%.
Select 100 units from a large portion. If 14 or more units are defected they will adjust the process, they consider that they have evidence that the proportion of defective units is more than 10%.
Ho: π= 0,10
rejection area x>14, X=number of defective units
a) Decide the test, significance level
b) What is the power of the test if the proportion of defected units from the large proportions is 15%
Thanks!
Emma


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