Power of a Test Math Example 3

Follow the full solution, then compare it with the other examples linked below.

Example 3

easy
List four factors that increase the power of a hypothesis test, and explain the direction of each effect.

Solution

  1. 1
    1. Larger sample size (nn \uparrow): reduces SE, making it easier to detect real effects → Power \uparrow
  2. 2
    2. Larger significance level (α\alpha \uparrow): easier to reject H0H_0 (more liberal) → Power \uparrow (but Type I error also increases)
  3. 3
    3. Larger true effect size (bigger difference from null): more signal → Power \uparrow
  4. 4
    4. Smaller population variability (σ\sigma \downarrow): less noise → Power \uparrow

Answer

Power increases with: larger n, larger α, larger effect size, smaller σ.
Power depends on the signal-to-noise ratio in the testing context. More signal (larger true effect) or less noise (smaller σ, larger n) both increase power. Increasing α is the least preferred method since it inflates Type I errors.

About Power of a Test

The probability that a hypothesis test correctly rejects a false null hypothesis. Power =P(reject H0H0 is false)=1β= P(\text{reject } H_0 \mid H_0 \text{ is false}) = 1 - \beta, where β\beta is the probability of a Type II error.

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