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Suppose a defendant is accused of a crime and placed on trial in a United States court of law. (a) Explain, in words, what the
Suppose a defendant is accused of a crime and placed on trial in a United States court of law. (a) Explain, in words, what the null hypothesis is. (b) Explain, in words, what is meant by a false positive. Question 4: (a) What does each dot in the above plot represent? To SP2024 Students: The actual midterm might include StatKey plots but not using the x1 x2 statistic. You should still be able to answer part (b). (b) Suppose the observed sample value of x1 x2 is 1.00. Is the p-value closer to 1.0, 0.1, or 0.01? Explain how you know this. Question 5: An insurance company believes that drivers can be divided into two classes, high-risk and low-risk. According to past data, a high-risk driver has an accident with probability 0.3 during a typical year. On the other hand, a low-risk driver has an accident with probability 0.1 during a typical year. Furthermore, 20% of policyholders are high-risk. Suppose that a new policyholder has an accident within a year of purchasing a policy. Demonstrate that the probability that that driver is high-risk equals 3/7
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