Let’s assume the IQ of a population is normally distributed with a standard deviation of 16. A hypothesis test collected 16 samples for the null hypothesis of mean IQ = 100 for a significance level of 5%. What is the power of the hypothesis test if the true population mean is 108?
Definition: The power of a test is the probability that it will correctly reject the null hypothesis when the null hypothesis is false.
Step 1: Estimate the Z-score for the alpha (significance level)
qnorm(0.05, 0, 1, lower.tail = FALSE)
1.645
Step 2: Estimate IQ corresponds to Z = 1.645
1.645 * 16 / sqrt(16) + 100 = 106.58
Above the IQ average of 106.58, the Null hypothesis (that the mean = 100) will be rejected.
Step 3: Estimate Z-score at X = 106.58 for mean = 108
The entire area above Z = -0.355 is included in the power region (the area below Z = -0.355 will be the false negative part as the null hypothesis will not be rejected).
Step 4: Estimate the cumulative probability > Z = -0.355
pnorm(-0.355, 0, 1, lower.tail = FALSE)
0.639
The power is 0.639 or 64%
Reference
Power Functions: PennState