APPLIED STATISTICS IN BUSINESS AND ECO
APPLIED STATISTICS IN BUSINESS AND ECO
5th Edition
ISBN: 9781260229509
Author: DOANE
Publisher: MCG
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Chapter 10, Problem 57CE

a.

To determine

State the hypotheses for a one-tailed test.

a.

Expert Solution
Check Mark

Explanation of Solution

The given information is that the medical center implanted defibrillators in 742 patients after a heart attack, 104 patients with defibrillators had diet. The total of 490 patients without the implant, 98 patients without defibrillators. That is, x1=104, n1=742, x2=98 and n2=490.

Let π1 be the proportion of died with the defibrillator and π2 be the proportion of died without the defibrillator.

Here, the direction of the test is left-tailed.

State the hypotheses:

Null hypothesis:

H0:π1π20

That is, the proportion of died without the defibrillator implanted is not higher than the proportion of died with the defibrillator.

Alternative hypothesis:

H1:π1π2<0

That is, the proportion of died without the defibrillator implanted is higher than the proportion of died with the defibrillator.

b.

To determine

Find the test statistic and p-value.

b.

Expert Solution
Check Mark

Answer to Problem 57CE

The test statistic is –2.78.

The p-value is 0.0027.

Explanation of Solution

Calculation:

Sample proportions:

First sample:

p1=x1n1=104742=0.14

Second sample:

p2=x2n2=98490=0.2

Pooled proportion:

pc=x1+x2n1+n2=104+98742+490=2021,232=0.164

Thus, the pooled proportion is 0.164.

Test statistic:

zcalc=p1p2pc(1pc)[1n1+1n2]=0.140.20.164(10.164)[1742+1490]=0.060.164(0.836)[0.00135+0.00204]=0.060.1371(0.00339)=2.78

Thus, the test statistic is –2.78.

p-value:

Software procedure:

Step-by-step software procedure to obtain p-value using EXCEL is as follows:

  • • Open an EXCEL file.
  • • In cell A1, enter the formula “=NORM.S.DIST (–2.78,1)”.
  • Output using EXCEL software is given below:

APPLIED STATISTICS IN BUSINESS AND ECO, Chapter 10, Problem 57CE

From the output, the p-value is 0.0027.

Decision rule:

If p-value<α, then reject the null hypothesis.

Conclusion for p-value method:

Here, the p-value is less than the level of significance.

That is, p-value(=0.0027)<α(=0.05).

Therefore, the null hypothesis is rejected.

Thus, there is evidence to infer that the proportion of died without the defibrillator implanted is higher than the proportion of died with the defibrillator.

c.

To determine

Check whether the normality of p1p2 can be assumed or not.

c.

Expert Solution
Check Mark

Answer to Problem 57CE

The normality of p1p2 can be assumed.

Explanation of Solution

Calculation:

Rule for normality:

  • • Rule 1: n1p110
  • • Rule 2: n1(1p1)10
  • • Rule 3: n2p210
  • • Rule 4: n2(1p2)10

Check the rule:

Rule 1: n1p110

n1p1=742(0.14)=103.88(>10)

Rule 2: n1(1p1)10

n1(1p1)=742(10.14)=638.12(>10)

Rule 3: n2p210

n2p2=490(0.2)=98(>10)

Rule 4: n2(1p2)10

n2(1p2)=490(10.2)=392(>10)

Since n1p1, n1(1p1), n2p2 and n2(1p2) are greater than 10, the normality of the sample proportion can be assumed.

d.

To determine

Explain why such devices might not be widely implanted in heart attack patients.

d.

Expert Solution
Check Mark

Explanation of Solution

Some of devices “exercise habits, smoking habits, nutrition, weight and so on” might not be widely implanted in heart attack patients because these devices might be effects the decision.

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Chapter 10 Solutions

APPLIED STATISTICS IN BUSINESS AND ECO

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