A simple random sample of 25 observations was selected from a normal population. The mean and standard deviation of this sample are 20 and 5, respectively.

a. Test H0:μ=22against Ha:μ22at the 10% significance level.

b. Test H0:μ22against H0:μ22at the 1% significance level.

Short Answer

Expert verified

a. The t-statistic is falls in to the rejection region. So, we reject the null hypothesis.

Step by step solution

01

Given Information

The sample size is, n=25.

The mean of the sample, x¯=20.

The sample standard deviation, s=5.

02

Null hypothesis

The null hypothesis is a common statistical theory that asserts that no statistical link or significance exists between two sets of observable data and measurable events. The null hypothesis is helpful since it can be tested to see whether or not there is a link between two measurable occurrences. It can tell the user whether the results produced are a result of chance and manipulation of a phenomena.

03

Compute the hypothesis test H0:μ=22 against  Ha:μ≠22 at the 10% significance level.

The null and alternative Hypothesis are given as follows:

H0:μ=22Ha:μ22

The significance level is 10%.

The test statistic is computed as:

t=x¯-μs/n=20-225/25=-21=-2

This is a two-tailed test. So, the critical value of t corresponding to the degrees of freedom (n-1)=24 obtained from the t-table is 1.711.

Here, t>ta2-2>1.711. So, we reject the null hypothesis.

Hence, the t-statistic is falls in to the rejection region. So, we reject the null hypothesis.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

A sample of five measurements, randomly selected from a normally distributed population, resulted in the following summary statistics: \(\bar x = 4.8\), \(s = 1.3\) \(\) .

a. Test the null hypothesis that the mean of the population is 6 against the alternative hypothesis, µ<6. Use\(\alpha = .05.\)

b. Test the null hypothesis that the mean of the population is 6 against the alternative hypothesis, µ\( \ne 6\). Use\(\alpha = .05.\)

c. Find the observed significance level for each test.

A random sample of n observations is selected from a normal population to test the null hypothesis that µ=10.Specify the rejection region for each of the following combinations of \(Ha,\alpha ,\) and n:

a.\(Ha:\)µ\( \ne 10;\alpha = .05.;n = 14\)

b.\(Ha:\)µ\( > 10;\alpha = .01;n = 24\)\(\)

c.\(Ha:\)µ\( > 10;\alpha = .10;n = 9\)

d.\(Ha:\)µ <\(10:\alpha = .01;n = 12\)

e.\(Ha:\)µ\( \ne 10;\alpha = .10;n = 20\)

f. \(Ha:\)µ<\(10;\alpha = .05;n = 4\)

Trading skills of institutional investors. Refer to The Journal of Finance (April 2011) analysis of trading skills of institutional investors, Exercise 7.36 (p. 410). Recall that the study focused on “round-trip” trades, i.e., trades in which the same stock was both bought and sold in the same quarter. In a random sample of 200 round-trip trades made by institutional investors, the sample standard deviation of the rates of return was 8.82%. One property of a consistent performance of institutional investors is a small variance in the rates of return of round-trip trades, say, a standard deviation of less than 10%.

a. Specify the null and alternative hypotheses for determining whether the population of institutional investors performs consistently.

b. Find the rejection region for the test usingα=.05

c. Interpret the value of in the words of the problem.

d. A Minitab printout of the analysis is shown (next column). Locate the test statistic andp-value on the printout.

e. Give the appropriate conclusion in the words of the problem.

f. What assumptions about the data are required for the inference to be valid?


Solder-joint inspections. Current technology uses high-resolution X-rays and lasers to inspect solder-joint defects on printed circuit boards (PCBs) (Global SMT & Packaging, April 2008). A particular manufacturer of laser-based inspection equipment claims that its product can inspect, on average, at least 10 solder joints per second when the joints are spaced .1 inch apart. The equipment was tested by a potential buyer on 48 different PCBs. In each case, the equipment was operated for exactly 1 second. The number of solder joints inspected on each run follows:

The potential buyer wants to know whether the sample data refute the manufacturer’s claim. Specify the null and alternative hypotheses that the buyer should test.

Ages of cable TV shoppers. Cable TV’s Home Shopping Network (HSN) reports that the average age of its shoppers is 52 years. Suppose you want to test the null hypothesis,\({H_0}:\mu = 52\), using a sample of\(n = 50\) cable TV shoppers.

a. Find the p-value of a two-tailed test if\(\overline x = 53.3\)and\(s = 7.1\)

b. Find the p-value of an upper-tailed test if\(\overline x = 53.3\)and\(s = 7.1\)

c. Find the p-value of a two-tailed test if\(\overline x = 53.3\)and\(s = 10.4\)

d. For each of the tests, parts a–c, give a value of\(\alpha \)that will lead to a rejection of the null hypothesis.

e. If\(\overline x = 53.3\), give a value of s that will yield a two-tailed p-value of 0.01 or less.

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free