Please use excel function where appropriate. The general model for the control l
ID: 3150674 • Letter: P
Question
Please use excel function where appropriate.
Explanation / Answer
(a) As the probability of type -1 error is 0.0001. and as we are taking both sided control limit so
L will such that P( X > L ) = 0.0001/2 = 0.00005 where X follows N(0,1) distribution.
so , P(X <=L) = 1-0.00005 = 0.99995 , which implies L is the inverse probability function N(0,1) distribution.
So L = =NORM.INV(0.99995,0,1) = 3.8906( answer)