EBK STATISTICS FOR BUSINESS AND ECONOMI
EBK STATISTICS FOR BUSINESS AND ECONOMI
13th Edition
ISBN: 8220103633567
Author: Sincich
Publisher: PEARSON
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Chapter 7, Problem 7.108LM

Specify the differences between a large-sample and small-sample test of hypothesis about a population mean α Focus on the assumptions and test statistics.

Expert Solution
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To determine

To explain:  The difference between the large samples and small samples for the hypothesis about a population mean.

Explanation of Solution

The hypothesis test about a population mean for a larger sample does not require any assumption because the central limit theorem states that the test statistic approximately has a normal distribution. For a small sample, assume that the population being sampled is normal.

  • For a large sample, the test statistic is the z-statistic.
  • For a small sample, the test statistic is the t statistic.

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Chapter 7 Solutions

EBK STATISTICS FOR BUSINESS AND ECONOMI

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