MindTap Business Statistics, 1 term (6 months) Printed Access Card for Anderson/Sweeney/Williams/Camm/Cochran's Essentials of Statistics for Business and Economics, 8th
MindTap Business Statistics, 1 term (6 months) Printed Access Card for Anderson/Sweeney/Williams/Camm/Cochran's Essentials of Statistics for Business and Economics, 8th
8th Edition
ISBN: 9781337114288
Author: Anderson, David R.; Sweeney, Dennis J.; Williams, Thomas A.; Camm, Jeffrey D.; Cochran, James J.
Publisher: Cengage Learning
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Chapter 9.3, Problem 14E

a.

To determine

Find the p-value for x¯=23 and state the conclusion.

a.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.3844.

The conclusion is “do not reject the null hypothesis”.

Explanation of Solution

Calculation:

It is given that the sample size is n=75, the sample mean is x¯=23, and the population standard deviation is σ=10.

The hypotheses are given below:

Null hypothesis: H0:μ=22

Alternative hypothesis: Ha:μ22

Test statistic:

The formula for finding test statistic is as follows:

z=x¯μ0σn

Here, x¯ represents the sample mean, μ0 represents the hypothesized value of the population mean, σ represents the population standard deviation, and n represents the sample size.

Substitute 23 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=23221075=1108.6602=11.1547=0.87

Thus, the value of the test statistic is 0.87.

For p-value:

In this case, z is greater than 0. Therefore, the p-value is two times the upper tail area.

That is,

p-value=2(Upper tail area)=2(1Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value 0.8 in the first column.
  • Locate the value 0.07 in the first row.
  • The intersecting value that corresponds to 0.87 is 0.8078.

p-value=2(10.8078)=2(0.1922)=0.3844

Thus, the p-value is 0.3844.

Rejection rule:

If p-valueα, reject the null hypothesis

If p-value>α, do not reject the null hypothesis.

Conclusion:

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

That is, p-value(=0.3844)>α(=0.01).

By the rejection rule, the null hypothesis is not rejected.

b.

To determine

Find the p-value for x¯=25.1 and state the conclusion.

b.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.0074.

The conclusion is “reject the null hypothesis”.

Explanation of Solution

Calculation:

Test statistic:

Substitute 25.1 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=25.1221075=3.1108.6602=3.11.1547=2.68

Thus, the value of the test statistic is 2.68.

For p-value:

In this case, z is greater than 0. Therefore, the p-value is two times the upper tail area.

That is,

p-value=2(Upper tail area)=2(1Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value 2.6 in the first column.
  • Locate the value 0.08 in the first row.
  • The intersecting value that corresponds to 2.68 is 0.9963.

p-value=2(10.9963)=2(0.0037)=0.0074

Thus, the p-value is 0.0074.

Conclusion:

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

That is, p-value(=0.0074)<α(=0.01).

By the rejection rule, the null hypothesis is rejected.

c.

To determine

Find the p-value for x¯=20 and state the conclusion.

c.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.083.

The conclusion is “do not reject the null hypothesis”.

Explanation of Solution

Calculation:

Test statistic:

Substitute 20 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=20221075=2108.6602=21.1547=1.73

Thus, the value of the test statistic is –1.73.

For p-value:

In this case, z is less than 0. Therefore, the p-value is two times the lower tail area.

That is,

p-value=2(Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value –1.7 in the first column.
  • Locate the value 0.03 in the first row.
  • The intersecting value that corresponds to–1.73 is 0.0418.

p-value=2(0.0418)=0.0836

Thus, the p-value is 0.0836.

Conclusion:

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

That is, p-value(=0.0836)>α(=0.01).

By the rejection rule, the null hypothesis is not rejected.

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Chapter 9 Solutions

MindTap Business Statistics, 1 term (6 months) Printed Access Card for Anderson/Sweeney/Williams/Camm/Cochran's Essentials of Statistics for Business and Economics, 8th

Ch. 9.3 - Consider the following hypothesis test: A sample...Ch. 9.3 - Consider the following hypothesis test: A sample...Ch. 9.3 - Consider the following hypothesis test: H0:50Ha:50...Ch. 9.3 - Prob. 14ECh. 9.3 - Prob. 15ECh. 9.3 - Credit Card Use by Undergraduates. In a study...Ch. 9.3 - 17. The mean hourly wage for employees in...Ch. 9.3 - Prob. 18ECh. 9.3 - Prob. 19ECh. 9.3 - Prescription Drug Costs. Annual expenditure for...Ch. 9.3 - Cost of Telephone Surveys. Fowle Marketing...Ch. 9.3 - Time in Supermarket Checkout Lines. CCN and...Ch. 9.4 - Consider the following hypothesis test: H0:12Ha:12...Ch. 9.4 - Consider the following hypothesis test: A sample...Ch. 9.4 - Consider the following hypothesis test: H0:45Ha:45...Ch. 9.4 - Consider the following hypothesis test: A sample...Ch. 9.4 - Prob. 27ECh. 9.4 - CEO Tenure. A shareholders’ group, in lodging a...Ch. 9.4 - Prob. 29ECh. 9.4 - Prob. 30ECh. 9.4 - Prob. 31ECh. 9.4 - Prob. 32ECh. 9.4 - 33. The mean annual premium for automobile...Ch. 9.4 - Prob. 34ECh. 9.5 - Consider the following hypothesis test:...Ch. 9.5 - Consider the following hypothesis test: A sample...Ch. 9.5 - Prob. 37ECh. 9.5 - Attitudes toward Supermarket Brands. A study by...Ch. 9.5 - Prob. 39ECh. 9.5 - Holiday Gifts from Employers. Last year, 46% of...Ch. 9.5 - 41. Ten years ago 53% of American families owned...Ch. 9.5 - Returned Merchandise. According to the University...Ch. 9.5 - Coupon Usage. Eagle Outfitters is a chain of...Ch. 9.5 - Malpractice Suits. One of the reasons health care...Ch. 9.5 - Prob. 45ECh. 9.7 - Consider the following hypothesis test. H0:10Ha:10...Ch. 9.7 - Consider the following hypothesis test. A sample...Ch. 9.7 - Prob. 48ECh. 9.7 - Miles per Gallon. A consumer research group is...Ch. 9.7 - Age of Magazine Subscribers. Young Adult magazine...Ch. 9.7 - Length of Telephone Surveys. Refer to exercise 48....Ch. 9.7 - Employee Participation in Investment Plans. Sparr...Ch. 9.8 - Consider the following hypothesis test. H0:10Ha:10...Ch. 9.8 - Consider the following hypothesis test....Ch. 9.8 - Underfilling Packages of Coffee. Suppose the...Ch. 9.8 - Battery Life. A special industrial battery must...Ch. 9.8 - Mean Age of Magazine Subscribers. Young Adult...Ch. 9.8 - Automobile Mileage. An automobile mileage study...Ch. 9 - Production Line Fill Weights. A production line...Ch. 9 - Scholarship Examination Scores. At Western...Ch. 9 - Prob. 62SECh. 9 - Prob. 63SECh. 9 - Prob. 64SECh. 9 - Prob. 65SECh. 9 - Residential Property Values. The chamber of...Ch. 9 - Prob. 67SECh. 9 - Prob. 68SECh. 9 - Using Laptops on Flights. An airline promotion to...Ch. 9 - Millennial Dependency on Parents. Members of the...Ch. 9 - Prob. 71SECh. 9 - Hotel Availability Over Holiday Weekend. A radio...Ch. 9 - Prob. 73SECh. 9 - Construction Worker Idle Time. Shorney...Ch. 9 - Federal Funding for Neighborhood Projects. A...Ch. 9 - Soap Production Process. H0: m = 120 and Ha: μ ≠...Ch. 9 - Quality Associates, Inc. Quality Associates, Inc.,...Ch. 9 - Case problem 2 Ethical Behavior of Business...
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