Question

A box contains 8 balls, \(\theta\) of which are white. The null hypothesis \(H_0: \theta = 3\) is tested by drawing 2 balls at random without replacement. 

The hypothesis is rejected in favour of the alternative hypothesis \(H_1: \theta > 3\) if both balls are white.

What is the significance level of the test?

• A. $\frac{3}{56}$
• B. $\frac{3}{28}$
• C. $\frac{1}{28}$
• D. $\frac{1}{56}$

Hint:

Level of significance is just "P(Rejection Region) calculated using the null parameter value." Here, simply calculate the probability of the event "both white" assuming there are exactly 3 white balls.

Answer 1

The Correct Option is B