EBK STATISTICAL TECHNIQUES IN BUSINESS
17th Edition
ISBN: 9781259924163
Author: Lind
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 16, Problem 13E
a.
To determine
State the null and alternative hypotheses.
b.
To determine
Provide the decision rule.
c.
To determine
Make the necessary conclusions regarding the null hypothesis.
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An investigator hypothesizes that the improvement rate associated with a placebo is P1 = 0.45, and that the improvement rate associated with an active drug is P2 = 0.65. The plan is to perform a two-tailed test. Use SAS to complete each problem below.
(a) If a significance level 0.01 and a power of 0.95 are desired, how large a sample per treatment must he study?
(b) How large must the sample size be if the significance level is relaxed to 0.05 and the power to 0.85?
(c) For this study, suppose that you have funds to recruit 130 patients per group. What is the power for a 5% level test for this sample size? First do the computation by hand and then use SAS to confirm.
An investigator hypothesizes that the improvement rate associated with a placebo is P1 = 0.45, and that the improvement rate associated with an active drug is P2 = 0.65. The plan is to perform a two-tailed test. Use SAS to complete each problem below.
(b) How large must the sample size be if the significance level is relaxed to 0.05 and the power to 0.85?
Suppose that instead of accruing an equal number of patients on each treatment arm, you allocate 1.5 patients to the new treatment for every patient on standard treatment. What sample size is required on each arm to guarantee 85% power with a level 0.05? How does the sample size computed here compare with the total required sample size in (b)?
Independent random samples of 32 people living on the west side of a city and 30 people living on the east side of a city were taken to determine if the income levels of west side residents are significantly different from the income levels of east side residents. Given the testing statistics below, determine if the data provides sufficient evidence to conclude that the income levels of west side residents are significantly different from the income levels of east side residents, at the 2% significance level.
H0:μw=μeHa:μw≠μe
t0=2.364
t0.01=±2.099
Select the correct answer below:
No; the test statistic is not between the critical values.
No; the test statistic is between the critical values.
Yes; the test statistic is not between the critical values.
Yes; the test statistic is between the critical values.
Chapter 16 Solutions
EBK STATISTICAL TECHNIQUES IN BUSINESS
Ch. 16 - Prob. 1SRCh. 16 - Prob. 1ECh. 16 - Prob. 2ECh. 16 - Calorie Watchers has low-calorie breakfasts,...Ch. 16 - Prob. 4ECh. 16 - Prob. 2SRCh. 16 - Prob. 5ECh. 16 - Prob. 6ECh. 16 - Prob. 7ECh. 16 - Prob. 8E
Ch. 16 - Prob. 3SRCh. 16 - Prob. 9ECh. 16 - Prob. 10ECh. 16 - Prob. 4SRCh. 16 - Prob. 11ECh. 16 - Prob. 12ECh. 16 - Prob. 13ECh. 16 - Prob. 14ECh. 16 - Prob. 5SRCh. 16 - Prob. 15ECh. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Prob. 18ECh. 16 - Prob. 6SRCh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 7SRCh. 16 - Prob. 25ECh. 16 - Prob. 26ECh. 16 - Prob. 27ECh. 16 - Prob. 28ECh. 16 - Prob. 29CECh. 16 - Prob. 30CECh. 16 - Prob. 31CECh. 16 - Prob. 32CECh. 16 - Prob. 33CECh. 16 - Prob. 34CECh. 16 - Prob. 35CECh. 16 - Prob. 36CECh. 16 - Prob. 37CECh. 16 - Prob. 38CECh. 16 - Prob. 39CECh. 16 - Professor Bert Forman believes the students who...Ch. 16 - Prob. 41DACh. 16 - Prob. 42DACh. 16 - Prob. 43DACh. 16 - Prob. 1PCh. 16 - The manufacturer of childrens raincoats wants to...Ch. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - B. Thomas Testing Labs John Thomas, the owner of...Ch. 16 - Prob. 1.1PTCh. 16 - Prob. 1.2PTCh. 16 - Prob. 1.3PTCh. 16 - Prob. 1.4PTCh. 16 - Prob. 1.5PTCh. 16 - Prob. 1.6PTCh. 16 - Prob. 1.7PTCh. 16 - Prob. 1.8PTCh. 16 - Prob. 1.9PTCh. 16 - Prob. 1.10PTCh. 16 - Prob. 2.1PTCh. 16 - Prob. 2.2PTCh. 16 - Prob. 2.3PTCh. 16 - Prob. 2.4PT
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