Question 4:
a) Formulate the likelihood ratio test for testing
b) Write down the equations needed to determine the sample size n and the critical value c such that the size of the test is 0.05 and the probability of type-II error when u =2.5 is 0.1. (note: only the equations are needed, no table checking is needed.)
c) If we took 16 samples and observed and the population standard deviation is 0.5, compute the p-value based on the data for the test in a). Will you reject H0 at level a-0.05 based on the p-value calculated?
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