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 9.5, Problem 35SE

a.

To determine

Find the test statistic and p-value.

State the conclusion for given level of significance.

a.

Expert Solution
Check Mark

Answer to Problem 35SE

The test statistic is 1.5 and the p-value is 0.1544.

The conclusion is that null hypothesis is not rejected.

Explanation of Solution

Calculation:

The given information is that, the sample mean is x¯=203, the sample standard deviation is s=8, the sample size is n=16 and the level of significance is α=0.025.

The test hypotheses are given below:

Null hypothesis: H0:μ=200

Alternative hypothesis: H1:μ200

The formula for test statistic is,

tcalc=x¯μ0sn

Where x¯ is the sample mean, μ0 is the population mean, s is the sample standard deviation and n is the sample size.

Substitute x¯=203, μ0=200, s=8 and n=16 in the test statistic formula.

tcalc=203200816=3(84)=32=1.5

Thus, the test statistic is 1.5.

Degrees of freedom:

df=n1=161=15

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 “=T.DIST.2T(1.5, 15)”
  • Output using Excel software is given below:

APPLIED STATISTICS IN BUSINESS AND ECO, Chapter 9.5, Problem 35SE , additional homework tip  1

Thus, the p-value for two-tailed test is 0.1544.

Decision rule:

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

Conclusion for p-value method:

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

That is, p-value(=0.1544)>α(=0.025).

Therefore, the null hypothesis is not rejected.

b.

To determine

Find the test statistic and p-value.

State the conclusion for given level of significance.

b.

Expert Solution
Check Mark

Answer to Problem 35SE

The test statistic is –2 and the p-value is 0.0285.

The conclusion is that null hypothesis is rejected.

Explanation of Solution

Calculation:

The given information is that, the sample mean is x¯=198, the sample standard deviation is s=5, the sample size is n=25 and the level of significance is α=0.05.

The test hypotheses are given below:

Null hypothesis: H0:μ200

Alternative hypothesis: H1:μ<200

Substitute x¯=198, μ0=200, s=5 and n=25 in the test statistic formula.

tcalc=198200525=2(55)=2

Thus, the test statistic is –2.

Degrees of freedom:

df=n1=251=24

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 “=T.DIST(–2, 24,1)”
  • Output using Excel software is given below:

APPLIED STATISTICS IN BUSINESS AND ECO, Chapter 9.5, Problem 35SE , additional homework tip  2

Thus, the p-value for left-tailed test is 0.0285.

Conclusion for p-value method:

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

That is, p-value(=0.0285)<α(=0.05).

Therefore, the null hypothesis is rejected.

c.

To determine

Find the test statistic and p-value.

State the conclusion for given level of significance.

c.

Expert Solution
Check Mark

Answer to Problem 35SE

The test statistic is 3.75 and the p-value is 0.0003.

The conclusion is that null hypothesis is rejected.

Explanation of Solution

Calculation:

The given information is that, the sample mean is x¯=205, the sample standard deviation is s=8, the sample size is n=36 and the level of significance is α=0.05.

The test hypotheses are given below:

Null hypothesis: H0:μ200

Alternative hypothesis: H1:μ>200

Substitute x¯=205, μ0=200, s=8 and n=36 in the test statistic formula.

tcalc=205200836=5(86)=51.3333=3.75

Thus, the test statistic is 3.75.

Degrees of freedom:

df=n1=361=35

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 “=T.DIST.RT(3.75, 35)”
  • Output using Excel software is given below:

APPLIED STATISTICS IN BUSINESS AND ECO, Chapter 9.5, Problem 35SE , additional homework tip  3

Thus, the p-value for right-tailed test is 0.0003.

Conclusion for p-value method:

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

That is, p-value(=0.0003)<α(=0.05).

Therefore, the null hypothesis is rejected.

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Chapter 9 Solutions

APPLIED STATISTICS IN BUSINESS AND ECO

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