Final answer:
The power of the test is the probability that the test will correctly reject a null hypothesis. To calculate the power of the test for a two-sided alternative, we need to determine the critical value and the standard deviation. The sample size needed to detect a difference with a probability of at least 0.9 can be calculated using the formula for sample size determination.
Step-by-step explanation:
The power of a statistical test is the probability that the test will correctly reject a null hypothesis when the alternative hypothesis is true. In this case, the alternative hypothesis is that there is a difference in the proportion of defective parts between the two machines. To calculate the power of the test, we need to determine the critical value and the standard deviation.
Step 1: Calculate the critical value
We need to determine the critical value based on the significance level and the alternative hypothesis. Since it is a two-sided test, the critical value is calculated using the z-score.
Critical value = Z(α/2) where α = 0.05
Z(0.025) ≈ 1.96
Step 2: Calculate the standard deviation
The standard deviation is calculated using the formula:
Standard deviation = √(p1(1-p1)/n1 + p2(1-p2)/n2)
Standard deviation = √((0.05(1-0.05)/300) + (0.01(1-0.01)/300))
Step 3: Calculate the power of the test
The power of the test is calculated using the formula:
Power = Φ[(p1-p2)/standard deviation - critical value]
Power = Φ[(0.05-0.01)/standard deviation - 1.96]
Step 4: Calculate the sample size needed
To determine the sample size needed to detect the difference with a probability of at least 0.9, we can use the formula:
n = ((Z(1-α/2)+Z(1-ß))^2) (p(1-p))/(p1-p2)^2
We assume that p = (p1+p2)/2