Pinto, James V. and Ng, Pin and Allen, David S. (2002) Logical extremes, beta, and the power of the test: Working paper series--02-03. Working Paper. NAU W.A. Franke College of Business.
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Abstract
There is a potential misuse of the power function under the logical extreme when the null hypothesis is true. The power function is defined to measure the probability of rejecting the null given any value of the parameter being tested. It can be used to obtain the power and the ? values only under the alternative hypothesis. When the null is true, the power function can be used to obtain the size of the test. The power and the probability of committing a type II error are, however, undefined and, hence, the power function should not be used to obtain these values.
| Item Type: | Monograph (Working Paper) |
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| Publisher’s Statement: | Copyright, where appropriate, is held by the author. |
| ID number or DOI: | 02-03 |
| Keywords: | Working paper, power function, type II error |
| Subjects: | H Social Sciences > HG Finance |
| NAU Depositing Author Academic Status: | Faculty/Staff |
| Department/Unit: | The W.A. Franke College of Business |
| Date Deposited: | 26 Jan 2016 19:37 |
| URI: | http://openknowledge.nau.edu/id/eprint/1634 |
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