Suppose that for data taken from a Normal distribution with unknown mean M and known standard deviation 1
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Get it written →Suppose that for data taken from a Normal distribution with unknown mean M and known standard deviation 1, we hypothesize that H0: M=0 versus H1: M != 0. Suppose that we conduct a hypothesis test at the 0.05 significance level and with sample size N=100.
1) Calculate the probability of a Type I error if the true value of M is 0.
2) Calculate the probability of a Type I error if the true value of M is 1.
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