Sample size for equal type I and II error of 5 percent
Question
A sales manager wants to detect a one-deal shift in the weekly mean number of deals per salesperson. He tests against with known variance , assuming normally distributed counts and simple random sampling. How many observations are needed so that both the significance level and the type II error probability equal ?
Short answer
. For a one-sided z-test, , which rounds up to .
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Open the worked solutionLessons behind this question
- Maximum Likelihood Estimation: Score and Log-Likelihood
- Covariance and Correlation
- The Hypothesis Testing Framework
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