Suppose that there are exactly two boxes, Box A and Box B. Each box contains 25 samesized

tokens. Each token is inscribed with a dollar value. The frequency table (distribution)

for each box is as follows:

Suppose that you are shown just one of the boxes. A claim is made that the box is Box A.

You must decide (judge) the probable truth of this claim statistically by selecting at random

one token from the shown box.

(a) Write the two hypotheses for the statistical test.

(b) What is the direction of extreme?

(c) Write a decision rule so that the probability of a Type I error is as close to, but no more

than, 10%.

(d) What is the numerical value of for for your decision rule in part (c)?

(e) What is the chance of committing a Type II error using your decision rule?

(f) Suppose that you select a token inscribed with $5. Using the decision rule from part (c),

what is your decision?