Let p denote the portion of a student’s exam with errors. Suppose we test H0 : p = 0.05 and Ha : p > 0.05 using the following rule. Two problems are chosen at random. If both are error free, we reject H0. If one or both contains an error, we look at a third problem. If the third problem is error free, we reject H0. In all other cases, we accept H0.

(a) Explain type I error in the context of this problem.

(b) What is the value of ? associated with this test?

(c) Explain type II error in the context of this problem.

(d) Calculate ? = Pr(type II error) as a function of p.

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step-by-step explanation:

answer: r there any options?

step-by-step explanation:

step-by-step explanation:

options

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%