The relationship between confidence interval and hypothesis testing is very close. Do you agree? Explain.Two scanners, Brand A and Brand B, are both designed to detect forged cinema tickets. To determine whether there is a difference in the performance of the two scanners 300 forged tickets were randomly selected and scanned by each. It was found that 197 forgeries were detected by Brand A while Brand B detected 178. Is there a difference in the performance of the two brands of scanners? Explain.A consultant believes that the price of a stock in a stock exchange will grow at a rate of 5% per week with a standard deviation of 1%. An investor believes the stock won’t grow as quickly. The changes in the price (%) recorded for 12 consecutive weeks are as follows: 3, 4, 2, 1, 3, 6, 1, 1, 2, 2, 3, 1. Who would you agree? the consultant or the investor? Explain.

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Answered: The relationship between confidence…

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.3: Measures Of Spread

Problem 1GP

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The relationship between confidence interval and hypothesis testing is very close. Do you agree? Explain.
Two scanners, Brand A and Brand B, are both designed to detect forged cinema tickets. To determine whether there is a difference in the performance of the two scanners 300 forged tickets were randomly selected and scanned by each. It was found that 197 forgeries were detected by Brand A while Brand B detected 178. Is there a difference in the performance of the two brands of scanners? Explain.
1. A consultant believes that the price of a stock in a stock exchange will grow at a rate of 5% per week with a standard deviation of 1%. An investor believes the stock won’t grow as quickly. The changes in the price (%) recorded for 12 consecutive weeks are as follows: 3, 4, 2, 1, 3, 6, 1, 1, 2, 2, 3, 1. Who would you agree? the consultant or the investor? Explain.

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