Chap 007

Chapter 07 - Hypothesis Testing
CHAPTER 7
HYPOTHESIS TESTING
7-1.
H0: p = 0.8
H1: p 0.8
7-2.
H0: 200
H1: > 200
7-3.
H0: 12
H1: > 12
7-4.
H0: $49,160
H1: < $49,160
7-5.
H0: $3.75
H1: > $3.75
7-6.
The power of a test is the probability that a false null hypothesis will be detected by the test. It is
important if the ramifications of accepting a false null hypothesis outweigh the costs of rejecting
the null hypothesis.
7-7.
Since and are inversely related and since power = (1 - ), then the level of significance and
the power of the test are directly related to each other: as increases, power increases.
7-8.
Increasing the level of significance.
7-9.
a) Null: there are no weapons Alternative: there are weapons

b) Type I error: rejecting the null hypothesis and concluding there are weapons when there are no
weapons.
Type II error: accepting the null hypothesis of no weapons when weapons are present.
c) Type II error would be more costly in terms of endangering lives. Type I would just be an
inconvenience for the passenger.
d) Largest value of possible.
e) If the sensitivity of the detectors is increased, it should result in more Type I errors and less
Type II errors.
f) If is to be increased, then the sensitivity of the detectors should also be increased to
compensate for the higher .
7-10.
Plan for a large sample.
7-11.
a) left tailed H1: < 10

b) right tailed H1: p > 0.5
c) left tailed H1: < 100
d) right tailed H1: > 20
e) two-tailed H1: p 0.22
7-1
f) right tailed H1: > 50

g) two-tailed H1: 2 140
7-12.
a) p= .5 - .4599 = 0.0401
b) p = 0.9599
c) p = .0802
7-13.
a) to the left tail

b) to the right tail
c) either to the left or to the right tail
7-14. A test statistic is a sample statistic computed from the data. Knowing the distribution of the test
statistic enables the construction of the rejection regions about the mean of the test statistic.
7-15.
7-16.
a) p value will decrease

b) p value increases
c) p value decreases
H0: = 31.5
H1: 31.5
x = 29.8
n = 100
s = 6.6
x 0
29.8 31.5
z=
=
= 2.575
6.6 / 10
s/ n
Reject H0 at
7-17.
= 0.05 (and almost at
H0: = 247
H1: 247
x = 250
n = 60
s = 12
x 0
250 247
z=
=
= 1.936
12 / 60
s/ n
= .01). The p-value is approximately 0.01
= 0.05, then also 0.01
(Using the template: Testing Population Mean.xls, sheet: sample stats)

Evidence
Sample size
Sample Mean
60
250
n
x-bar
Known; Normal Population or Sample Size >= 30
Population Stdev.
12
Test Statistic 1.9365 z
Do not reject H0 at
increase your .
7-18.
Null Hypothesis
H0: = 247
= .05 nor at
H0: = 5
H1: 5
= .05 n = 120
x = 2.3
p-value
0.0528
At an of
5%
= .01. (p-value = .0528). Maybe take a larger sample, or
s = 1.5
7-2
z=
2.3 5
1.5 / 120
= 19.72
Reject H0 at = .05 and at smaller levels. Average miles traveled per day is probably smaller
than 5. Changes in service may be necessary (the p-value is very small).
7-19.
H0: = 77
H1: 77
x = 84
n = 50
s = 28
Hypothesis Testing - Population Mean
Evidence
Sample size
Sample Mean
50
84
n
x-bar
Population Stdev.
28
Null Hypothesis
H0: = 77
H0: 77
H0: 77
p-value
0.0771
0.9615
0.0385
At an of
5%
Reject
Reject H0 at the 0.10 level of (the p-value is small). Customer satisfaction has probably
improved. If a one tail hypothesis test is conducted, the level is reduced to 0.05.
7-20.
H0: = 4.3 H1: 4.3

x = 3.8
n = 50
s = 1.1
Reject H0 at any (p-value = 0.1454).
Evidence
Sample size
Sample Mean
50
3.8
= .05
n
x-bar
Population Stdev.
1.1
Test Statistic -3.2141 z
Null Hypothesis
H0: = 4.3
H0: 4.3
H0: 4.3
p-value
0.0013
0.0007
0.9993
7-3
At an of
5%
Reject
Reject
7-4
7-21.
H0: =14.25 H1:

x = 16.50
n = 16
t (15) =
16.50 14.25
5.8 /
14.25
s = 5.8
7-23.
H0: = 452.8 H1: 452.8

x = 501.9 s = 65
n = 12
t (11) =
= 0.05
= 1.55
16
Right-hand critical point for t (15) and

Do not reject H0 (p-value > .10).
7-22.
Use
501.9 452.8
65 / 12
=.05 is 2.131 (and for
Use
= .10, t = 1.753).
= .05
= 2.617
The right-hand critical point for t (11) at = 0.05 is 2.201, and for
H0 at = .05. The p-value is between 0.02 and 0.05.
H0: = 27
x = 24.53
H1:
27 n = 43
s = 4.954
= 0.02 it is 2.718. Reject
= .05
Critical value for right side: 1.96

24.53 27
= 3.269
4.954 / 43
z =
Reject H0, average staff age is under 27 years old. p-value = .0011
7-24.
H0: = 0
H1:
x = 3.1
n = 13
t (12) =
3.1 0
1/
13
0
s =1
= 11.177
The p-value is very small. Reject H0. Inclusion in the index likely increases average stock return (at
least initially).
Evidence
Sample size
Sample Mean
Sample Stdev.
13
3.1
1
n
x-bar
s
Unknown; Population Normal

Test Statistic 11.1772 t
Null Hypothesis
H0: = 0
7-25.
H0: = 102.5
H1: 102.5
x = 107 s = 10
n = 25
Try
p-value
0.0000
At an of
5%
Reject
= .05 and .01
7-5
t (24) =
107 102.5
10 /
25
= 2.25
The critical point at = .05 for t (24) is 2.064; the critical point at = .01 = 2.797. Therefore,
the results are significant at = .05, and not significant at = .01. Reject H0 at = .05, but
not at = .01.
7-26.
H0: = 2.5 H1: 2.5

= 0.8
x = 2.3
n = 20
Use z because the population is normal and
z=
2.3 2.5
0 .8 /
20
is known.
= 1.118
Do not reject H0 (p-value = 0.2636).

7-27.
H0: = 12.4 H1: 12.4

n = 100 x = 14.1
use = .05
Evidence
Sample size
Sample Mean
100
14.1
n
x-bar
Population Stdev.
2.6
Null Hypothesis
H0: = 12.4
H0: 12.4
H0: 12.4
Reject H0 at
7-28.
p-value
0.0000
1.0000
0.0000
.39818 .42
(.42)(.58) / 550
= 1.037

7-29.
H0: p = 0.12
Reject
= .05 (p-value = 0.000).
H0: p = 0.42
H1: p 0.42
= 219/550 = 0.39818 use
x = 219 p
n = 550
z=
At an of
5%
Reject
H1: p
0.12
7-6
= .01
x = 17 use
n = 100
.17 .12
z=
= .05
= 1.539
(.12)(.88) / 100

7-30.
H0: 250
H1: < 250
x = 235 use = .05 and .01
n = 30
Evidence
Sample size
Sample Mean
30
235
n
x-bar
Population Stdev.
85
Null Hypothesis
H0: = 250
H0: 250
H0: 250
Do not reject H0 at either

7-31.
= .05 and
H0: p = 0.56
H1: p 0.56
= 0.596 use
n = 500
x = 298 p
.596 .56
z=
(.56)(.44) / 500
p-value
0.3338
0.1669
0.8331
At an of
5%
= .01
= .01
= 1.622

7-32.
H0: u
7%
H1: u < 7%
s = 2.9225 x = 2.405
n = 41
= .01
2.405 7.00
= 10.07
2.9225 / 41
z=
Reject H0, Americans do not save enough.

7-33.
H0: = 0
H1: 0
n = 24 x = 0.12 s = 0.2 use
t (23) =
.12 0
.2 /
24
= .05
= 2.939 > 2.069 (the critical value of t (23) for
7-7
= .05, two-tailed test).
Reject H0. This industrys stocks probably have positive excess returns in the period in question.
7-34.
H0: = 3.3
H1: 3.3
x = 2.8 s = 1.7
n = 120
Evidence
Sample size
Sample Mean
120
2.8
n
x-bar
Population Stdev.
1.7
Null Hypothesis
H0: = 3.3
H0: 3.3
H0: 3.3
p-value
0.0013
0.0006
0.9994
At an of
5%
Reject
Reject
Reject H0 (p-value is very small).
7-35.
H0: 1.5M H1: > 1.5M

x = 2.3M s = 0.5M
n = 100
z=
2.3 1.5
0.5 / 100
= 16.0
Stongly reject H0 (p-value is very small).

7-36.
H0: p 0.17 H1: p > 0.17

= 381/2,000 = 0.1905 use
p
n = 2,000 x = 381
z=
.1905 .17
(.17)(.83) / 2,000
= .01
= 2.44 > 2.326
Reject H0 (p-value = .0073). The reported figure of 17% is probably not correct.
7-8
Evidence
Assumption
Both np and n(1-p) >= 5
Sample size 2000 n

#Successes 381 x
Sample Proportion 0.1905 p-hat
Test statistic 2.4406 z
Hull Hypothesis
H0: p = 0.17
H0: p >= 0.17
H0: p <= 0.17
7-37.
H0:
n = 100
z=
Reject
125 H1: < 125

x = 121 s = 2
121 125
2/
At an of
1%
p-value
0.0147
0.9927
0.0073
100
= 20
Reject H0 (p-value is very small). Replace all tires.

7-38.
Problem 7-38:
(Use template: testing population mean.xls; sheet:sample stats)
H0: =7
H1: 7
Evidence
Sample size
Sample Mean
Sample Stdev.
100
4
3
n
x-bar
s

Test Statistic -10.0000 t
Null Hypothesis
H0: = 7
H0: 7
H0: 7
p-value
0.0000
0.0000
1.0000
At an of
5%
Reject
Reject
Reject the null hypothesis: meetings are less than 7 minutes late in starting.
7-39.
H0: p .45 H1: p < .45

= 49/125 = .392
n = 125 p
z=
.392 .45
(.45)(.55) / 125
= 1.303
7-9
Do not reject H0 (p-value = 0.0962). There is no strong evidence here that the program works in
reducing the chance of a midlife crisis.
7-40.
H0: p 0.11 H1: p < 0.11

= 421/3,500 = 0.1203
n = 3,500 x = 421 p
z=
.1203 .11
(.11)(.89) / 3,500
= +1.945
= .1203 > .11, we need not consider the test statistic value above. Do not reject H0
Since p
(p-value = 0.9741 > .05). There is no evidence that the unemployment rate has been reduced.
Evidence
Assumption
Sample size 3500 n

#Successes 421 x
Test statistic 1.9448 z
Hull Hypothesis
H0: p = 0.11
H0: p >= 0.11
7-41.
At an of
5%
p-value
0.0518
0.9741
H0: 2.5 H1: > 2.5

n = 100 x = 5.2 s = 2.8
z=
5.2 2.5
2.8 / 100
= 9.643
Reject H0 (p-value is very small). There is probable cause for action.

7-42.
(Use template: testing population mean.xls; sheet:sample stats)

H0: 56 H1: < 56
7-10

Evidence
Sample size
Sample Mean
30
50
n
x-bar
Population Stdev.
8
Null Hypothesis
H0: = 56
H0: 56
H0: 56
p-value
0.0000
0.0000
1.0000
At an of
5%
Reject
Reject
Reject the null hypothesis: the average temperature is less than 56.
7-43.
(Use template: testing population proportion.xls; sheet:normal)

H0: p = 0.75 H1: p 0.75
z-Test for Population Proportion
Evidence
Assumption
Sample size 100 n

#Successes 61 x
Test statistic-3.2332z
Hull Hypothesis
H0: p = 0.75
H0: p >= 0.75
H0: p <= 0.75
p-value
0.0012
0.0006
0.9994
At an of
5%
Reject
Reject
Reject the null hypothesis: the percentage of trades is significantly less than 75%.
7-44.
H0: p = .60 H1: p .60

= 130/250 = .52 Two-tailed test:
p
n = 250 x = 130
p p 0
.52 .6
z=
=
= 2.582
(.6)(.4) / 250
p0 q0 / n
p-value = 2(.5 .4951) = 2(.0049) = 0.0098. Reject H0 at = .01. The proportion of frequent
business travelers who believe that daily service is important has probably decreased.
7-11
7-45.
Standing start:
H0: 5.28 H1: > 5.28
x = 5.8 s = 1.9
n = 100
5.8 5.28
z=
= 2.737
1.9 / 100
(Template: Testing Population Means.xls, sheet: sample stats)
Evidence
Sample size
Sample Mean
100
5.8
n
x-bar
Population Stdev.
1.9
Null Hypothesis
H0: = 5.28
H0: 5.28
H0: 5.28
p-value
0.0062
0.9969
0.0031
At an of
5%
Reject
Reject
p-value = 0.0031. Reject H0.

Braking: H0: 3.10 H1: > 3.10
x = 3.21 s = 0.6
n = 100
3.21 3.10
z=
= 1.83
0.6 / 100
Evidence
Sample size
Sample Mean
100
3.21
n
x-bar
Population Stdev.
0.6
Null Hypothesis
H0: = 3.1
H0: 3.1
H0: 3.1
p-value
0.0668
0.9666
0.0334
p-value = 0.0334. Reject H0.

7-46.
H0: = 25.2 H1: 25.2

x = 26.1 s = 3.2
n = 115
7-12
At an of
5%
Reject
z=
26.1 25.2
3.2 /
115
= 3.016
p-value = 2(.5 - .4987) = 0.0026. Reject H0. The new model probably has a higher average electric
output.
(Template: Testing Difference in Means.xls, sheet: z-test from stats)
Evidence
Sample size
Sample Mean
115
26.1
n
x-bar
Population Stdev.
3.2
Null Hypothesis
H0: = 25.2
7-47.
p-value
0.0026
At an of
5%
Reject
H0: 110 H1: > 110

= .05 n = 80 = 30
We need the power at 1 = 120:
C = 0 + 1.645 / n = 110 + 1.645(30)/ 80 = 115.5175
C 120
Power = P( X > C | = 120) = P Z >

/ n
= P
Z >
115.5175 120
= P(Z > 1.336) = .4092 + .5 = 0.9092.

30 / 80
Good power at 1 = 120.

7-48.
H0: p 60 H1: p< 60

= .05
n = 60
7-13
(Using the template: Testing Population Proportion.xls, sheet: Normal)

z-Test for Population Proportion
Evidence
Assumption
Sample size 60 n
#Successes 21 x
Test statistic-3.9528z
Hull Hypothesis
H0: p = 0.6
H0: p >= 0.6
H0: p <= 0.6
p-value
0.0001
0.0000
1.0000
At an of
5%
Reject
Reject
Reject H0. p-value = 0.000

7-49.
H0: 25000 H1: > 25000

n = 100 = .05 x = 45600
s = 20000
(Using template: Testing Population Mean.xls, sheet: Sample Stats)
Evidence
Sample size
Sample Mean
100
45600
n
x-bar

Population Stdev. 20000
Null Hypothesis
H0: = 25000
H0: 25000
H0: 25000
p-value
0.0000
1.0000
0.0000
At an of
5%
Reject
Reject
Reject H0. p-value = 0.000

7-50.
H0: p = .45 H1: p .45

n = 500 = .01
C1, 2 = .45 2.576 (.45)(.55) / 500 = 0.507, 0.393
> C1 | p = 0.5)
The power at p1 = 0.5 is: P( P
Z >
= P
= P(Z > 0.313) = .5 0.1228 = 0.3772

(.5)(.5) / 500
.507 0.5
7-14
< C 2 | p = 0.4)
The power at p1 = 0.4 is: P( P
Z<
= P
= P(Z < 0.3195) = .5 0.1253 = 0.3747

(.4)(.6) / 500
.393 0.4
Both are about 0.37.

7-51.
H0: u 246 H1: u < 246
n = 60
s = 20
x = 239
= .01
239 246
= 2.711
20 / 60
Z =
Reject H0. The engine does not provide the stated horsepower.
(Template: Testing Difference in Means.xls, sheet: z-test from stats)
Evidence
Sample size
Sample Mean
60
239
n
x-bar
Population Stdev.
20
Null Hypothesis
H0: = 246
H0: 246
p-value
0.0067
0.0034
At an of
1%
Reject
Reject
7-52.
We can increase the power without changing n by increasing the level of significance used,
7-53.
H0: = 13
H1: 13
n = 50 x = 11
s= 6
Evidence
Sample size
Sample Mean
50
11
n
x-bar
Population Stdev.
6
Null Hypothesis
H0: = 13
H0: 13
H0: 13
p-value
0.0184
0.0092
0.9908
7-15
At an of
5%
Reject
Reject
At
7-54.
= .05, reject H0. The proportion is probably less than 13%.
p-value = 0.0184
H0: p .35 H1: p > .35

= 1,367/3.850 = .355
p
n = 3,850 x = 1,367
p p 0
z=
= .650
p0 q0 / n
Do not reject H0. p-value = .5 .2450 = 0.2550. There is no evidence in these sampling results
that the market share was higher than 35%.
7-55.
H0: p .43 H1: p > .43

= 0.458
p
n = 5,500 x = 2,521
p p 0
z=
= 4.249
p0 q0 / n
Reject H0. Small p-value (< .00003). The executive should talk about the p-value of this test. There
is strong evidence that GMs market share is over 43%
7-56.
H0: = 6
H1: 6
n = 120 x = 7.2 s= 3.5
Evidence
Sample size
Sample Mean
120
7.2
n
x-bar
Population Stdev.
3.5
Null Hypothesis
H0: = 6
H0: 6
H0: 6
p-value
0.0002
0.9999
0.0001
At an of
5%
Reject
Reject
Reject H0. The number of years in a house is more than 6 years. p-value= 0.0002
7-57.
a) Type I error: Keeping the beach closed when it could have been opened
Type II error: Opening the beach when it should have been closed.
b) More costly error? Depends on whose costs. Merchants would find Type I error more costly.
Health officials would find Type II error more costly.
c) = 0.05
7-58.
a) and b) will result in an increase in the power of a test, other things being equal.
7-16
7-59.
b) will result in an increase in the p-value only if the sample mean is less than .
c) will result in an increase in the p-value.
7-60.
b) will result in an increase in the p-value.
7-61.
should be reduced and/or the sample size should be increased. Reducing , reduces the
probability of a Type I error. Increasing the sample size also reduces the Type I error.
7-62.
Statements a), b), c), and f) are all true; just different ways of saying the same thing. d) and e) are
clearly false: for d) it is a Type I error that will be committed and for e) there is still the possibility
of a Type I error being committed.
7-63.
It is important to know the power of a test so that we know our probability of rejecting H0 when it
should indeed be rejected, for given values of the parameter under H1.
7.64.
7-65.
The level of is set before the test as our maximum allowed probability of a Type I error. The pvalue is the actual significance level of the test. It is the smallest at which H0 can be rejected.
H0: p .05 H1: p < .05
= .0212922
n = 1,362 x = 29 p
p p 0
z=
= 4.86
p0 q0 / n
Reject H0; very small p-value. The proportion of women in top management is probably less than
5%.
Suppose = .05. Find the power at p 1 = .04:
C = .05 1.645
(.05)(.95)
= 0.0402854
1362
Power = P(Z < .0537) = .5 + .0214 = 0.5214

Evidence
Sample size 1362
#Successes
29
Sample Proportion 0.0213
Test statistic -4.8612
Hull Hypothesis
H0: p = 0.05
H0: p >= 0.05
Assumption
n
x
p-hat
z
At an of
5%
Reject
Reject
p-value
0.0000
0.0000
7-17
H0: p
0.05
Sample Size
7-66.
Assumption:
Both np and n(1-p) are >= 5
1362
5%
When p = 0.04
P(Type II Error) 0.4807
Power 0.5193
H0: p 21 H1: p < 21

= 4.8
p
= .05
n = 250 x = 12
(Using template: Testing Population Proportion.xls, sheet: Normal)
Evidence
Assumption
Sample size 250 n

#Successes
12
x
Test statistic -6.2887 z
Hull Hypothesis
H0: p = 0.21
H0: p >= 0.21
H0: p <= 0.21
p-value
0.0000
0.0000
1.0000
At an of
5%
Reject
Reject
Reject H0. Vacancy rate is less than 21%. p-value = 0.000

7-67.
H0: 2 156 H1: 2 > 156

n = 25 s 2 = 175 = .05
2
( 24 )
( n 1) s
2
0
24(175)
= 26.923
156
The critical value for = .05 is 36.4150, therefore we cannot reject H0 and the p-value is > .10.
There is no evidence that the variance is above 156. Maybe we need to take a larger sample.
7-68.
H0: p .95 H1: p < .95

= .92
p
n = 1,500 x = 1,380
z=
.92 .95
(.95)(.05) / 1,500
= 5.33
Reject H0. There is evidence that the proportion of rental units decreased from 0.95 during the
period in question. (The p-value is very small.)
7-18
(Template: Testing Population Proportion.xls, sheet: normal)

Evidence
Assumption
Sample size
#Successes
Sample Proportion
Test statistic
1500
1380
0.9200
-5.3311
Hull Hypothesis
H0: p = 0.95
H0: p >= 0.95
7-69.
At an of
5%
Reject
Reject
p-value
0.0000
0.0000
H0: 3.1 H1: > 3.1

n = 21 x = 4.38 s = 5.55
t (20) =
4.38 3.1
5.55 /
21
= 1.06
Do not reject H0 even at

more off-time.
7-70.
n
x
p-hat
z
= .10 (p-value = 0.15). No evidence that increased benefits lead to
H0: p .30 H1: p > .30

= 59/166 = .3554
N = 1,000 n = 166 x = 59 = .10 p
n/N = 166/1,000 = .166 > .05, therefore, we need to use the f.p.c.f.
p p 0
z=
.0554216
= 1.705
p0 q0 N n =
.0324979
n N 1
Reject H0 at = .05; p-value = .5 .4559 = 0.0441. There is some evidence that over 30% of the
Fortune top 1,000 use the multiple scenario approach.
7-71.
H0: 3.8 H1: < 3.8

n = 15 x = 2.1 s = 1.2
7-19

Evidence
Sample size
Sample Mean
Sample Stdev.
15
2.1
1.2
n
x-bar
s

Null Hypothesis
H0: = 3.8
H0: 3.8
H0: 3.8
p-value
0.0001
0.0000
1.0000
At an of
5%
Reject
Reject
Reject H0. The number of visitors is less than 3.8M. p-value = 0.000
7-72.
H0: = 125 H1: 125

n = 25 x = 151.96 s = 90.619
t (24) =
151.96 125
90.619 /
25
= 1.4875
We cannot reject H0 even at = .10. The critical points of t (24) are 1.711. There is no
evidence that the average price is different from $125 million.
7-73.
H0: p 0.25 H1: p > 0.25

= x/n = .31333
p
n = 300 x = 94
p p 0
z=
= 2.53
p0 q0 / n
Reject H0. There is evidence that the proportion of microcomputer owners interested in the
software package is over 25%. The company should probably market the product.
p-value = .5 .4943 = 0.0057.
7-74.
H0: p 0.20 H1: p < 0.20

= .1752
n = 5,000 x = 876 p
p p 0
z=
= 4.38
p0 q0 / n
The p-value is very small (p-value < .00003). Reject H0. There is strong evidence that the NSF
study overestimated the proportion of foreign scientists employed by American laboratories.
7-20
7-75.
H0: = 5.5
H1: 5.5
Do not reject H0 at 0.05 level of significance
Evidence
Sample size
Sample
Mean
50
5.1
x-bar

Population
Stdev. 2.3
At an of
Null Hypothesis
p-value
5%
H0: = 5.5
0.2188
7-76.
H0: =3
H1: 3
Evidence
Sample size
Sample Mean
Sample Stdev.
20
4.6
2.1
n
x-bar
s

Null Hypothesis
H0: = 3
H0: 3
H0: 3
Reject H0
7-77.
p-value
0.0030
0.9985
0.0015
At an of
5%
Reject
Reject
It takes longer than 3 seconds to print a page. p-value = 0.0030
H0: p 58%
H1: p < 58%
(Using template: Testing Population Proportion.xls, sheet: Binomial)
7-21
Evidence
Assumption
Large Population
Sample size 70 n
#Successes 36.4 x
Null Hypothesis
H0: p >= 0.58
7-78.
p-value
At an of
5%
0.1604
H0: p 50
H1: p < 50
n = 700 x = 220
p = 31.4
(Using template: Testing Population Proportion.xls, sheet: Normal)
Evidence
Assumption
Sample size 700 n

#Successes 220 x
Hull Hypothesis
H0: p = 0.5
H0: p >= 0.5
H0: p <= 0.5
At an of
5%
Reject
Reject
p-value
0.0000
0.0000
1.0000
Reject H0 Ownership proportion is less than 50%. p-value = 0.000

7-79.
H0: 60
H1: > 60
(Using template: Testing Population Mean.xls, sheet: Sample Data)
Evidence
Sample size
Sample Mean
Sample Stdev.
17
63.8824
13.4531
n
x-bar
s

Null Hypothesis
H0: = 60
H0: 60
H0: 60
p-value
0.2515
0.8743
0.1257
Do not reject H0. p-value = 0.1257
7-22
At an of
5%
7-80.
H0: 40
H1: < 40
(Template: Testing Population Mean.xls, sheet: sample data)
Evidence
Sample size
Sample Mean
Sample Stdev.
20
53.95
24.2823
n
x-bar
s

Null Hypothesis
H0: = 40
H0: 40
H0: 40
p-value
0.0188
0.9906
0.0094
At an of
5%
Reject
Reject
Do not reject H0
7-81.
H0: = 40
H1: 40
Even at a two-tailed test, reject H0 p-value = 0.0188
7-82.
H0: 4.2%
H1: p < 4.2%
reject H0 at 0.01 level of significance
(Template: Testing Population Mean.xls, sheet: Sample stats)
Evidence
Sample size
Sample Mean
Sample Stdev.
50
1.4
0.8
n
x-bar
s

Null Hypothesis
H0: 4.2
p-value
At an of
1%
0.0000
Reject
7-23
7-83. a) versus chart

Type I and Type II Error probabilities
Data
Assumption
H0:
56
2.16
Popn. Stdev.
Tabulation of when =
Either Normal Population

Or n > 30
1-Tail test
55
5.2%
30
40
50
60
0.3%
58%
43%
30%
20%
0.4%
55%
39%
27%
18%
0.5%
52%
36%
24%
16%
7-23
0.6%
49%
34%
22%
14%
0.8% 1.0%
45% 42%
30% 27%
19% 17%
12% 10%
1.2%
39%
25%
15%
9%
2.0%
31%
19%
11%
6%
4.0% 10.0%
22% 10%
12%
5%
6%
2%
3%
1%
b)
power = 0.4968
Power Curve for a Test
Assumption:
Or n >= 30
H0:
When =
55.5
Power 0.4968
56
Popn. Stdev. 2.16
Sample Size 50 n
Significance Level 5%
c) OC Curve not much to be gained going to sample size of 60

Operating Characteristic Curve
Assumption:
Or n >= 30
H0:
56
Sample
Size
Sample
Size
Popn. Stdev. 2.16

7-24
50
n1
60
n2
Legend
n = 50
n = 60
7-84.
a) Power Curve
H0: p
Sample Size
0.25
1000
5%
Assumption:
n
When p = 0.22
Power 0.5913
7-25
b) OC Curve. Not much to be gained.
H0: p
0.25
Sample Size
n1
1000
Assumption:
n2
1200
5%
7-26
Legend
n = 1000
n = 1200
7-85.
a) versus chart
Data
H0:
Popn. Stdev.
30
0.52
Tabulation
of when
=
30.3
0.7%
30
40
50
60
0.3%
34%
18%
9%
4%
0.4%
31%
16%
8%
3%
0.5%
28%
14%
7%
3%
0.6%
26%
13%
6%
3%
7-27
0.8%
23%
11%
5%
2%
1.0%
20%
9%
4%
2%
1.2%
18%
8%
3%
1%
2.0%
13%
6%
2%
1%
4.0% 10.0%
8%
3%
3%
1%
1%
0%
0%
0%
7-28
b) Power = 0.6779
H0:
When =
30.2
P(Type II
Error) 0.3221
Power 0.6779
30
Popn. Stdev.
Sample Size
Significance
Level
0.52
30
5%
c) better to go with n = 60 for a Type II error of almost 0.

Assumption:
Or n >= 30
H0:
30
Sample
Size
Sample
Size
Popn. Stdev. 0.52

7-29
30
n1
60
n2
Legend
n = 30
n = 60
7-86.
The probability of a Type I error is equal to , whether it is a two-tailed test or a one-tailed test.
The probability of making a Type I error declines as the sample mean moves further and further
away from .
7-87 (Use template: testing population mean.xls; sheet:sample size)

1. minimum sample size: n = 54
Sample Size Determination for Testing
H0:
Popn. Stdev.
Significance Level
248
5
10.00%
Probability of Type II Error

When =
250
Desired Maximum 5.00%
Required Sample Size
54
Assumption
Or n >= 30
7-30
2. OC curve:
Assumption:
Or n >= 30
H0:
248
Sample Size
Sample Size
Popn. Stdev.
54
1.00
0.90
P(Accept H0)
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
246
247
248
249
250
251
252
Actual
3. sample sizes for various means and s:

Tabulation of required sample size
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
249
251
230
215
202
191
181
Actual
250
251
63
28
58
26
54
24
51
23
48
22
46
21
252
16
15
14
13
12
12
The range of sample sizes runs from a minimum of 12 to a maximum of 251.
7-31
n1
n2
7-88 (Use template: testing population proportion.xls; sheet:sample size)

Sample Size Determination for Testing p
1. minimum sample size: n = 158
H0: p
Significance Level
0.03
5.00%
Chances of Type II Error

When p =
0.08
Required Sample
size
158
2. OC curve:
OC Curve of a
Test for p
H0: p
0.03
Sample Size
n1
158
5%
Assumption:
n2
P(Accept H 0)
OC Curves of the Test

1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0%
5%
10%
15%
20%
Actual p
7-32
3. sample sizes for various percentage defectives and s:

Tabulation of Required Sample Size
8%
4%
6%
8%
12%
0.06
420
539
470
420
348
Actual p
0.07
0.08
256
176
331
229
287
198
256
176
211
144
0.09
130
170
147
130
106
0.1
101
133
114
101
82
Minimum sample sizes range from 82 to 420.

7-89.
H0: p = .60
n = 1000
H1: p .60
= .55 = 55
p
Evidence
Assumption
Sample size 1000 n

#Successes 550 x
Hull Hypothesis
H0: p = 0.6
H0: p >= 0.6
H0: p <= 0.6
At an of
5%
Reject
Reject
p-value
0.0012
0.0006
0.9994
Reject H0. The number of executives changing careers is less than 60%. p-value = 0.0012
Case 9: Tiresome Tires I
(Use template: testing population mean.xls; sheet:various)
1.
Type I and Type II Error probabilities
Data
H0:
Assumption
Popn. Stdev.
2800
20

Or n >= 30
1-Tail test
7-33
Tabulation
of when
=
2790
2.9%
30
40
60
80
1.0%
34%
20%
6%
2%
2.0%
25%
13%
3%
1%
2.5%
22%
11%
3%
1%
3.0%
20%
10%
2%
0%
3.5%
18%
9%
2%
0%
4.0%
16%
8%
2%
0%
4.5%
15%
7%
1%
0%
60%
50%
40%
30
40
30%
60
80
20%
10%
0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
A sample size of approximately 60 tires is appropriate.

2) exact sample size is 64.
H0:
Popn. Stdev.
Significance Level
2800
20
5.00%
Probability of Type II Error

When =
2790
Required Sample Size
64
Assumption
Or n >= 30
7-34
5.0%
14%
6%
1%
0%
6.0% 10.0%
12%
7%
5%
3%
1%
0%
0%
0%
Sensitivity analysis table:

Tabulation of required sample size
: 2788
1.0%
44
1.8%
39
2.6%
36
3.4%
34
4.2%
32
5.0%
31
Actual
2790
2792 2794
64
99
176
57
88
156
52
81
144
49
76
134
46
72
127
44
68
121
3) Power Curve:
Power Curve for a Test
Assumption:
Or n >= 30
H0:
When = 2790
P(Type II
Error) 0.0646
Power 0.9354
2800
Popn. Stdev. 20
Sample Size 40 n
1.00
0.90
0.80
0.70
Power
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2784
2786
2788
2790
2792
2794
Actual
2796
7-35
2798
2800
2802
4) Operating Characteristic Curve:

Assumption:
Or n >= 30
H0:
2800
Popn. Stdev.
20
Significance Level
5%
Sample
Size
Sample
Size
80
n1
40
n2
1.00
0.90
0.80
P(Accept H0)
0.70
0.60
0.50
Legend
n = 80
- - - - n = 40
0.40
0.30
0.20
0.10
0.00
2788
2790
2792
2794
2796
2798
2800
2802
2804
2806
Actual
5) Increasing has a similar effect as increasing the sample size in reducing the probability of a Type II
error. At = 0.05, the probability of a Type II error, , was 0.0646. At = 0.10, is reduced to 0.03,
which is still larger than the desired of 0.01. To get a desired of 0.01, the significance level would have
to increased to 20%.
H0:
When = 2790
P(Type II
Error) 0.0300
Power 0.9700
2800
Popn. Stdev.
Sample Size
Significance
Level
20
40
10%
7-36
1.00
0.90
0.80
0.70
Power
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2786
2788
2790
2792
H0:
2794
2796
Actual
20
40
20%
2800
2802
When = 2790
P(Type II
Error) 0.0102
Power 0.9898
2800
Popn. Stdev.
Sample Size
Significance
Level
2798
7-37

Chap 007

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Chap 007

Hochgeladen von

Copyright:

Verfügbare Formate

Chapter 07 - Hypothesis Testing

Increasing the level of significance.

a) Null: there are no weapons Alternative: there are weapons

Plan for a large sample.

a) left tailed H1: < 10

Chapter 07 - Hypothesis Testing

f) right tailed H1: > 50

a) to the left tail

a) p value will decrease

= 0.05 (and almost at

= .01). The p-value is approximately 0.01

= 0.05, then also 0.01

(Using the template: Testing Population Mean.xls, sheet: sample stats)

Known; Normal Population or Sample Size >= 30

= .01. (p-value = .0528). Maybe take a larger sample, or

Chapter 07 - Hypothesis Testing

Known; Normal Population or Sample Size >= 30

H0: = 4.3 H1: 4.3

Known; Normal Population or Sample Size >= 30

Chapter 07 - Hypothesis Testing

Chapter 07 - Hypothesis Testing

H0: =14.25 H1:

H0: = 452.8 H1: 452.8

Right-hand critical point for t (15) and

=.05 is 2.131 (and for

= 0.02 it is 2.718. Reject

Critical value for right side: 1.96

Unknown; Population Normal

= .05 and .01

Chapter 07 - Hypothesis Testing

H0: = 2.5 H1: 2.5

Do not reject H0 (p-value = 0.2636).

H0: = 12.4 H1: 12.4

Known; Normal Population or Sample Size >= 30

Do not reject H0 (p-value = 0.2998).

= .05 (p-value = 0.000).

Chapter 07 - Hypothesis Testing

Do not reject H0 (p-value = 0.1238).

Known; Normal Population or Sample Size >= 30

Do not reject H0 at either

Do not reject H0 (p-value = 0.1048).

Reject H0, Americans do not save enough.

= 2.939 > 2.069 (the critical value of t (23) for

= .05, two-tailed test).

Chapter 07 - Hypothesis Testing

Known; Normal Population or Sample Size >= 30

Reject H0 (p-value is very small).

H0: 1.5M H1: > 1.5M

Stongly reject H0 (p-value is very small).

H0: p 0.17 H1: p > 0.17

= 2.44 > 2.326

Chapter 07 - Hypothesis Testing

Sample size 2000 n

125 H1: < 125

Reject H0 (p-value is very small). Replace all tires.

Unknown; Population Normal

H0: p .45 H1: p < .45

Chapter 07 - Hypothesis Testing

H0: p 0.11 H1: p < 0.11

Sample size 3500 n

H0: 2.5 H1: > 2.5

Reject H0 (p-value is very small). There is probable cause for action.

(Use template: testing population mean.xls; sheet:sample stats)

Chapter 07 - Hypothesis Testing