Please explain how to determine statisical power based on this slide and what is

Question

Please explain how to determine statisical power based on this slide and what is being shown in the curves on it.

Statistical Power The power of a statistical test is the probability that the test will correctly reject a false null hypothesis. It is the probability that the test will identify a treatment effect if one really exists. critical z 1.95996 Type Il error: failure to reject a false Ho = P(Fail to reject H0 | H0 is false) 0.3 0.2 power Power of the test 1-B-P(reject Ho | Ho is false) 0 Errors in decision making Actual Situation No Effect Ho True Effect Exists Ho False Reject Ho Type I error Decision correct EXPERIMENTER'S DECISION Fail to reject Ho Decision correctType I error

Explanation / Answer

NORMINV(1 – , , s.e.) use this command in Excel to find power. (s.e.= standard error= sigma / n)

The curve on the left represents the normal curve being tested with mean 0 and the normal curve on the right represents the real distribution with mean 1.

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