Applied Statistics in Business and Economics with Connect Access Card with LearnSmart
Applied Statistics in Business and Economics with Connect Access Card with LearnSmart
5th Edition
ISBN: 9781259396656
Author: David Doane, Lori Seward Senior Instructor of Operations Management
Publisher: McGraw-Hill Education
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Chapter 10, Problem 86CE

a.

To determine

State the hypotheses.

a.

Expert Solution
Check Mark

Explanation of Solution

The given information is that the summary statistic for Sonando High School students is x¯1=14.51, s1=2.69 and n1=11. The summary statistic for Gedacht High School is x¯2=11.88, s2=2.66 and n2=16.

Here, the direction of the test is right tailed.

Assume μS is the average number of times Sonando High School students ordered fast-food and μG is the average number of times Gedacht High School students ordered fast-food.

State the hypotheses:

Null hypothesis:

H0:μSμG0

That is, Sonando High School students did not choose fast-food restaurants more often than Gedacht High School.

Alternative hypothesis:

H1:μSμG>0

That is, Sonando High School students choose fast-food restaurants more often than Gedacht High School.

b.

To determine

Find the test statistic, assuming equal population variances.

b.

Expert Solution
Check Mark

Answer to Problem 86CE

The test statistic is 2.513.

Explanation of Solution

Calculation:

The formula for test statistic is,

tcalc=(x¯1x¯2)sp2n1+sp2n2

Where, sp2=(n11)s12+(n21)s22n1+n22

The pooled variance is,

sp2=(111)(2.69)2+(161)(2.66)211+162=(10)(7.2361)+(15)(7.0756)25=178.49525=7.1398

The test statistic is,

tcalc=(14.5111.88)7.139811+7.139816=2.630.6491+0.4462=2.631.0953=2.631.0466=2.513

Thus, the test statistic is 2.513.

c.

To determine

State the decision rule and the quick rule for degrees of freedom.

c.

Expert Solution
Check Mark

Answer to Problem 86CE

The decision rule is “reject the null hypothesis, if tcalc>+2.896”.

The degrees of freedom is 8.

Explanation of Solution

Calculation:

The degrees of freedom is,

df=n1+n22=11+162=25

Critical value:

Software procedure:

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

  • Open an EXCEL file.
  • In cell A1, enter the formula “=T.INV(0.99, 25)”
  • Output using Excel software is given below:

Applied Statistics in Business and Economics with Connect Access Card with LearnSmart, Chapter 10, Problem 86CE , additional homework tip  1

From the output, the critical value is 2.485.

Decision rule:

If tcalc>+2.485, then reject the null hypothesis.

d.

To determine

State the conclusion.

d.

Expert Solution
Check Mark

Answer to Problem 86CE

There is evidence to infer that Sonando High School students choose fast-food restaurants more often than Gedacht High School.

Explanation of Solution

Here, the test statistic is greater than the critical value.

That is, tcalc(=2.513)>+2.485.

Therefore, the null hypothesis is rejected.

Thus, there is evidence to infer that Sonando High School students choose fast-food restaurants more often than Gedacht High School.

e.

To determine

Check whether it is reasonable to assume equal variances.

e.

Expert Solution
Check Mark

Answer to Problem 86CE

Yes, it is reasonable to assume equal variances.

Explanation of Solution

Calculation:

State the hypotheses:

Null hypothesis:

H0:σ12σ22=1

That is, the variances are equal.

Alternative hypothesis:

H1:σ12σ221

That is, the variances are not equal.

Degrees of freedom for numerator:

df1=n11=111=10

Degrees of freedom for denominator:

df2=n21=161=15

Level of significance:

α2=0.012=0.005

Lower critical value:

Software procedure:

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

  • Open an EXCEL file.
  • In cell A1, enter the formula “=F.INV(0.005,10,15)”
  • Output using EXCEL is given below:

Applied Statistics in Business and Economics with Connect Access Card with LearnSmart, Chapter 10, Problem 86CE , additional homework tip  2

From the output, the critical value is FL=0.1828.

Upper critical value:

Software procedure:

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

  • Open an EXCEL file.
  • In cell A1, enter the formula “=F.INV.RT(0.005,10,15)”
  • Output using EXCEL is given below:

Applied Statistics in Business and Economics with Connect Access Card with LearnSmart, Chapter 10, Problem 86CE , additional homework tip  3

From the output, the critical value is FR=4.4235.

Decision rule:

  • If Fcalc<0.1828, then reject the null hypothesis
  • If Fcalc>4.4235, then reject the null hypothesis.

Test statistic:

F=s12s22=(2.69)2(2.66)2=7.23617.0756=1.023

Thus, the test statistic is 1.023.

Conclusion:

Here, the test statistic is lies between lower and upper critical values.

That is, 0.1828<Fcalc(=1.023)<4.4235.

Therefore, the null hypothesis is not rejected.

Thus, there is no evidence to infer that the variance has changed. That is, the population variances are equal.

Hence, it is reasonable to assume equal variances.

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Chapter 10 Solutions

Applied Statistics in Business and Economics with Connect Access Card with LearnSmart

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