Actuarial Notes

CAS Exam MAS-I Spring 2019, Question 21

Study guide: Exam MAS-I

X_1, X_2, \ldots, X_{100} is a random sample from a Bernoulli distribution with probability of success q.

You perform the hypothesis test:

H_0\colon q = 0.5 \quad \text{vs} \quad H_1\colon q > 0.5

The critical region is chosen to be C = \left\{\sum_{i=1}^{100} x_i \ge 60\right\}.

Calculate the probability of a Type I error.

  • A) Less than 0.01
  • B) At least 0.01, but less than 0.02
  • C) At least 0.02, but less than 0.03
  • D) At least 0.03, but less than 0.04
  • E) At least 0.04

Answer this question and see the worked solution

Concepts tested

More questions from this set