AppliedNumeric answer
A hundred candidate signals · Part 2 of 3
A researcher tests 100 independent candidate signals, each at the 5% level. In truth 90 have no predictive value and 10 are real, and each real signal is detected with probability 0.8, the power of its test. Take the false-discovery share to be the expected number of false positives divided by the expected number of discoveries.
What share of the expected discoveries are false?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
More statistics and inference questions
- You have 100 observations and a standard error of 0.4.Foundation
- A sample of 36 observations has mean 0.8 and standard deviation 3.Foundation
- You observe 8 successes in 20 trials.Foundation
- A quantity has standard deviation 15.Foundation
- A strategy averaged 0.05% a day with a daily standard deviation of 1% over 252 days.Foundation
- You test 50 signals and want the family-wise error rate at 5%.Foundation