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Q19Section I (Objective (Q1–Q80))19 of 80

Statistical Inference — size of a sign test for a percentile hypothesis

To test whether the upper 60th60^{\text{th}} percentile of a continuous distribution equals 25 or less, the sign test is applied based on a random sample of size 10 and the null hypothesis is rejected if the number of observations larger than 25 is 7 or more. The size of the test, given that (0.6)7≈0.028(0.6)^7 \approx 0.028, is approximately

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