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314 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests CHAPTER 9 9.1 Decision rule: Reject H0 if Z STAT < – 1.96 or Z STAT > + 1.96. Decision: Since ZSTAT = − 0.76 is in between the two critical values, do not reject H0. 9.2 To make a decision concerning the null hypothesis, you first determine the critical value of the test statistic. The critical value divides the non-rejection region from the rejection region. The critical value approach compares the value of the computed ZSTAT test statistic from Equation (9.1) to critical values that divide the normal distribution into regions of rejection and non-rejection. Decision rule is the rule that accepts or rejects the hypothesis, given the critical value. For instance, at 95% confidence level, 0.025% at each side of the two-tail test is the rejection area. The Z value for this rejection area is 1.96. Thus, 1.96 is the critical value and the decision rule is Reject H0 if ZSTAT > +1.96 or if ZSTAT < −1.96; otherwise, do not reject H0. 9.3 Decision rule: Reject H0 if Z STAT < – 1.645 or Z STAT > + 1.645. 9.4 Decision rule: Reject H0 if Z STAT < – 2.58 or Z STAT > + 2.58. 9.5 Decision: Since Z STAT = – 2.61 is less than the lower critical value of – 2.58, reject H0. 9.6 p-value = 2(1 − .9772) = 0.0456 9.7 Since the p-value of 0.0456 is less than the 0.10 level of significance, the statistical decision is to reject the null hypothesis. 9.8 p-value = 0.1676 9.9 α is the probability of incorrectly convicting the defendant when he is innocent. β is the probability of incorrectly failing to convict the defendant when he is guilty. 9.10 Under the French judicial system, unlike ours in the United States, the null hypothesis assumes the defendant is guilty, the alternative hypothesis assumes the defendant is innocent. A Type I error would be not convicting a guilty person and a Type II error would be convicting an innocent person. 9.11 (a) (b) (c) (d) 9.12 A Type I error is the mistake of approving an unsafe drug. A Type II error is not approving a safe drug. The consumer groups are trying to avoid a Type I error. The industry lobbyists are trying to avoid a Type II error. To lower both Type I and Type II errors, the FDA can require more information and evidence in the form of more rigorous testing. This can easily translate into longer time to approve a new drug. H0: µ = 32%. The packet contains 32% cashews. H1: µ ≠ 32%. The packet does not contain 32% cashews. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.13 (a) (b) (c) 9.14 (a) 315 H 0: µ = 12.1 hours H 1: µ ≠ 12.1 hours A Type I error is the mistake of concluding that the mean number of hours studied by marketing majors at your school is different from the 12.1-hour-per-week benchmark reported by The Washington Post when in fact it is not any different. A Type II error is the mistake of not concluding the mean number of hours studied by marketing majors at your school is different from the 12.1-hour-per-week benchmark reported by The Washington Post when it is in fact different. PHStat output: ZTestofHypothesisfortheMean Data NullHypothesisµ= LevelofSignificance PopulationStandardDeviation SampleSize SampleMean 7500 0.05 1000 64 7250 IntermediateCalculations StandardErroroftheMean 125.0000 Z TestStatistic -2.0000 Two-TailTest LowerCriticalValue UpperCriticalValue p -Value Rejectthenullhypothesis H 0: H 1: µ = 7500. µ ≠7500. -1.9600 1.9600 0.0455 The mean life of a large shipment of light bulbs is equal to 7500 hours. The mean life of a large shipment of light bulbs differs from 7500 hours. Decision rule: Reject H 0 if |ZSTAT| > 1.96 X −µ = -2.0000 σ/ n Decision: Since |ZSTAT| > 1.96, reject H 0 . There is enough evidence to conclude that the Test statistic: Z STAT = (b) mean life of a large shipment of light bulbs differs from 7500 hours. p-value = 0.0455. If the population mean life of a large shipment of light bulbs is indeed equal to 7500 hours, the probability of obtaining a test statistic that is more than 2.0 standard error units away from 0 is 0.0455. © 2015 Pearson Education Ltd. 316 9.14 cont. Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (c) PHStat output: ConfidenceIntervalEstimatefortheMean Data PopulationStandardDeviation SampleMean SampleSize ConfidenceLevel 1000 7250 64 95% IntermediateCalculations StandardErroroftheMean 125.0000 ZValue -1.9600 IntervalHalfWidth 244.9955 ConfidenceInterval IntervalLowerLimit IntervalUpperLimit 9.15 σ 1000 64 (c) X ± Z a /2 (d) You are 95% confident that the population mean life of a large shipment of light bulbs is somewhere between 7005.00 and 7495.00 hours. Since the 95% confidence interval does not contain the hypothesized value of 7500, you will reject H 0 . The conclusions are the same. n = 7250 ± 1.96 7005.00 7495.00 7005.00 ≤ µ ≤ 7495.00 (a) X ± Zα / 2 (b) σ n 100 ± 1.96 (25/√100) = 104.9, 95.1 Since, hypothesized π = 95 lies within the confidence intervals, H0 is accepted. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.16 (a) 317 PHStat output: Data µ= Null Hypothesis Level of Significance Population Standard Deviation Sample Size Sample Mean Intermediate Calculations Standard Error of the Mean Z Test Statistic 1 0.01 0.02 50 0.995 0.002828427 -1.767766953 Two-Tail Test Lower Critical Value -2.575829304 Upper Critical Value 2.575829304 p-Value 0.077099872 Do not reject the null hypothesis H 0: H 1: µ = 1. µ ≠1. The mean amount of water is 1 gallon. The mean amount of water differs from 1 gallon. Decision rule: Reject H 0 if |ZSTAT| > 2.5758 (a) (b) (c) X − µ .995 − 1 = = −1.7678 σ / n .02/ 50 Decision: Since |ZSTAT| < 2.5758, do not reject H 0 . There is not enough evidence to Test statistic: Z STAT = conclude that the mean amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company is different from 1 gallon. p-value = 0.0771. If the population mean amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company is actually 1 gallon, the probability of obtaining a test statistic that is more than 1.7678 standard error units away from 0 is 0.0771. PHStat output: Data Population Standard Deviation Sample Mean Sample Size Confidence Level 0.02 0.995 50 99% Intermediate Calculations Standard Error of the Mean Z Value Interval Half Width 0.002828427 -2.5758293 0.007285545 Confidence Interval Interval Lower Limit Interval Upper Limit 0.987714455 1.002285545 © 2015 Pearson Education Ltd. 318 9.16 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (c) cont. (d) 9.17 (a) X ± Z a /2 σ n = .995 ± 2.5758 .02 50 0.9877 ≤ µ ≤ 1.0023 You are 99% confident that population mean amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company is somewhere between 0.9877 and 1.0023 gallons. Since the 99% confidence interval does contain the hypothesized value of 1, you will not reject H 0 . The conclusions are the same. (a) PHStat output: Z Test of Hypothesis for the Mean Data Null Hypothesis m= 1 Level of Significance 0.01 Population Standard Deviation 0.012 Sample Size 50 Sample Mean 0.995 Intermediate Calculations Standard Error of the Mean 0.001697056 Z Test Statistic -2.946278255 Two-Tail Test Lower Critical Value -2.575829304 Upper Critical Value 2.575829304 p-Value 0.003216229 Reject the null hypothesis H 0: H 1: µ = 1. µ ≠1. The mean amount of water is 1 gallon. The mean amount of water differs from 1 gallon. Decision rule: Reject H 0 if |ZSTAT| > 2.5758 X −µ .995 − 1 = = −2.9463 σ / n .012/ 50 Decision: Since |ZSTAT| > 2.5758, reject H 0 . There is enough evidence to Test statistic: Z STAT = (b) conclude that the mean amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company is different from 1 gallon. p-value = 0.0032. If the population mean amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company is actually 1 gallon, the probability of obtaining a test statistic that is more than 2.9463 standard error units away from 0 is 0.0032. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.17 cont. (a) (c) 319 PHStat output: Confidence Interval Estimate for the Mean Data Population Standard Deviation Sample Mean Sample Size Confidence Level Intermediate Calculations Standard Error of the Mean Z Value Interval Half Width 0.001697056 -2.5758293 0.004371327 Confidence Interval Interval Lower Limit Interval Upper Limit 0.990628673 0.999371327 X ± Z a /2 (d) (b) 0.012 0.995 50 99% σ n = .995 ± 2.5758 .012 50 0.9906 ≤ µ ≤ 0.9994 You are 99% confident that population mean amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company is somewhere between 0.9906 and 0.9994 gallon. Since the 99% confidence interval does not contain the hypothesized value of 1 gallon, you will reject H 0 . The conclusions are the same. The smaller population standard deviation results in a smaller standard error of the Z test and, hence, smaller p-value. Instead of not rejecting H 0 as in Problem 9.16, you end up rejecting H 0 in this problem. X – µ 56 – 50 = 2.00 = S 12 16 n 9.18 t STAT = 9.19 d.f. = n – 1 = 16 – 1 = 15 9.20 For a two-tailed test with a 0.05 level of confidence, the critical values are 9.21 Since t STAT = 2.00 is between the critical bounds of 9.22 No, you should not use the t test to test the null hypothesis that µ = 60 on a population that is leftskewed because the sample size (n = 16) is less than 30. The t test assumes that, if the underlying population is not normally distributed, the sample size is sufficiently large to enable the test to be valid. If sample sizes are small (n < 30), the t test should not be used because the sampling distribution does not meet the requirements of the Central Limit Theorem. ± 2.1315. ± 2.1315, do not reject H0. © 2015 Pearson Education Ltd. 320 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests 9.23 Yes, you may use the t test to test the null hypothesis that µ = 60 even though the population is left-skewed because the sample size is sufficiently large (n = 160). The t test assumes that, if the underlying population is not normally distributed, the sample size is sufficiently large to enable the test statistic t to be influenced by the Central Limit Theorem. 9.24 PHStat output: t Test for Hypothesis of the Mean Data 3.7 µ= Null Hypothesis Level of Significance 0.05 Sample Size 64 Sample Mean 3.57 Sample Standard Deviation 0.8 Intermediate Calculations Standard Error of the Mean 0.1 Degrees of Freedom 63 t Test Statistic -1.3 Two-Tail Test Lower Critical Value -1.9983405 Upper Critical Value 1.9983405 p-Value 0.1983372 Do not reject the null hypothesis H 0 : µ = 3.7 (a) H1 : µ ≠ 3.7 Decision rule: Reject H 0 if |tSTAT| > 1.9983 d.f. = 63 X − µ 3.57 - 3.7 Test statistic: t STAT = = = -1.3 S / n 0.8/ 64 Decision: Since |tSTAT| < 1.9983, do not reject H 0 . There is not enough evidence to conclude that the population mean waiting time is different from 3.7 minutes at the 0.05 level of significance. (b) The sample size of 64 is large enough to apply the Central Limit Theorem and, hence, you do not need to be concerned about the shape of the population distribution when conducting the t-test in (a). In general, the t test is appropriate for this sample size except for the case where the population is extremely skewed or bimodal. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.25 (a) H0 : π = 80,000 H1 : π ≠ 80,000 Decision rule: Reject H0 if |tSTAT| > 2.0096 or p-value < 0.05 d.f. = 49 𝑡"#$# = 𝑋−𝜇 70,000 − 80,000 = = 7.07 𝑆 10,000 𝑛 50 p-value = 0.000 (b) Decision: Since |tSTAT| > 2.0096 and the p-value of 0.000 < 0.05, reject H0. There is sufficient evidence to conclude that average life is different. © 2015 Pearson Education Ltd. 321 322 9.26 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests PHStat output: (a) H0 : π = 420.99 H1 : π ≠ 420.99 Decision rule: Reject H0 if |tSTAT| > 2.0096 or p-value < 0.05 d.f. = 49 𝑡"#$# = (b) 𝑋−𝜇 450 − 420.99 = = 2.05 𝑆 100 𝑛 50 p-value = 0.0456 Decision: Since |tSTAT| > 2.0096 and the p-value of 0.0456 < 0.05, reject H0. There is sufficient evidence to conclude that average property prices are different. Since the results do not provide sufficient evidence to prove that the property prices are not different, the manager can conclude that the published prices do not prevail in the current market scenario, and he can look for options to buy at a different price. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.27 323 PHStat output: t Test for Hypothesis of the Mean Data µ= Null Hypothesis Level of Significance Sample Size Sample Mean Sample Standard Deviation Intermediate Calculations Standard Error of the Mean Degrees of Freedom t Test Statistic 200 0.05 18 195.3 21.4 5.044028372 17 -0.931794917 Two-Tail Test Lower Critical Value -2.109815559 Upper Critical Value 2.109815559 p-Value 0.364487846 Do not reject the null hypothesis (a) H 0 : µ = 200 H1 : µ ≠ 200 Decision rule: Reject H 0 if |tSTAT| > 2.1098 or p-value < 0.05 X − µ 195.3 − 200 Test statistic: tSTAT = = = −0.9318 S / n 21.4 / 18 p-value = 0.3645 Decision: Since |tSTAT| < 2.1098 and the p-value of 0.3645 > 0.05, do not reject H 0 . There (b) is not enough evidence to conclude that the population mean tread wear index is different from 200. The p-value is 0.3645. If the population mean is indeed 200, the probability of obtaining a test statistic that is more than 0.9318 standard error units away from 0 in either direction is 0.3645. © 2015 Pearson Education Ltd. 324 9.28 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 6.5 0.05 15 7.09 1.406031226 IntermediateCalculations StandardErroroftheMean 0.3630 DegreesofFreedom 14 t TestStatistic 1.6344 Two-TailTest LowerCriticalValue -2.1448 UpperCriticalValue 2.1448 p -Value 0.1245 Donotrejectthenullhypothesis (a) H 0 : µ = $6.50 H1 : µ ≠ $6.50 Decision rule: Reject H 0 if |tSTAT| > 2.1448 or p-value < 0.05 Test statistic: tSTAT = (b) (c) (d) X −µ = 1.6344 S/ n Decision: Since |tSTAT| < 2.1448, do not reject H 0 . There is not enough evidence to conclude that the mean amount spent for lunch is different from $6.50. The p-value is 0.1245. If the population mean is indeed $6.50, the probability of obtaining a test statistic that is more than 1.6344 standard error units away from 0 in either direction is 0.4069. That the distribution of the amount spent on lunch is normally distributed. With a sample size of 15, it is difficult to evaluate the assumption of normality. However, the distribution may be fairly symmetric because the mean and the median are close in value. Also, the boxplot appears only slightly skewed so the normality assumption does not appear to be seriously violated. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.29 (a) (b) (c) 325 H 0 : µ = 45 H1 : µ ≠ 45 Decision rule: Reject H 0 if |tSTAT| > 2.0555 d.f. = 26 X − µ 43.8889 - 45 Test statistic: t STAT = = = −0.2284 S / n 25.2835/ 27 Decision: Since |tSTAT| < 2.0555, do not reject H 0 . There is not enough evidence to conclude that the mean processing time has changed from 45 days. The population distribution needs to be normal. Normal Probability Plot 100 90 80 70 Time 60 50 40 30 20 10 0 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 Z Value 9.30 (d) . The normal probability plot indicates that the distribution is not normal and is skewed to the right. The assumption in (b) has been violated. (a) H0 : µ = 2 (b) d.f. = 49 H1 : µ ≠ 2 Decision rule: Reject H 0 if |tSTAT| > 2.0096 X −µ 2.0007 - 2 Test statistic: t STAT = = = 0.1143 S / n 0.0446/ 50 Decision: Since |tSTAT| < 2.0096, do not reject H 0 . There is not enough evidence to conclude that the mean amount of soft drink filled is different from 2.0 liters. p-value = 0.9095. If the population mean amount of soft drink filled is indeed 2.0 liters, the probability of observing a sample of 50 soft drinks that will result in a sample mean amount of fill more different from 2.0 liters is 0.9095. © 2015 Pearson Education Ltd. (c) Normal Probability Plot 2.15 2.1 2.05 Amount 9.30 cont. Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests 2 1.95 1.9 1.85 -3 -2 -1 0 1 2 3 Z Value (d) The normal probability plot suggests that the data are rather normally distributed. Hence, the results in (a) are valid in terms of the normality assumption. (e) Time Series Plot 2.15 2.1 2.05 Amount 326 2 1.95 1.9 1.85 1.8 1.75 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 The time series plot of the data reveals that there is a downward trend in the amount of soft drink filled. This violates the assumption that data are drawn independently from a normal population distribution because the amount of fill in consecutive bottles appears to be closely related. As a result, the t test in (a) becomes invalid. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems (a) PHStat output: Data µ= Null Hypothesis Level of Significance Sample Size Sample Mean Sample Standard Deviation 20 0.05 50 43.04 41.92605736 Intermediate Calculations Standard Error of the Mean Degrees of Freedom t Test Statistic 5.929239893 49 3.885826921 Two-Tail Test Lower Critical Value -2.009575199 Upper Critical Value 2.009575199 p-Value 0.000306263 Reject the null hypothesis H 0 : µ = 20 H1 : µ ≠ 20 Decision rule: Reject H 0 if tSTAT > 2.0096 d.f. = 49 X −µ 43.04 - 20 Test statistic: t STAT = = = 3.8858 S / n 41.9261/ 50 Decision: Since tSTAT > 2.0096, reject H 0 . There is enough evidence to conclude that the (b) (c) mean number of days is different from 20. The population distribution needs to be normal. Normal Probability Plot 180 160 140 120 Days 9.31 327 100 80 60 40 20 0 -3 -2 -1 0 1 2 3 Z Value (d) The normal probability plot indicates that the distribution is skewed to the right. Even though the population distribution is probably not normally distributed, the result obtained in (a) should still be valid due to the Central Limit Theorem as a result of the relatively large sample size of 50. © 2015 Pearson Education Ltd. 9.32 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (a) (b) (c) H 0 : µ = 8.46 H1 : µ ≠ 8.46 Decision rule: Reject H 0 if |tSTAT| > 2.0106 d.f. = 48 X − µ 8.4209 - 8.46 Test statistic: t STAT = = -5.9355 = S / n 0.0461/ 49 Decision: Since |tSTAT| > 2.0106, reject H 0 . There is enough evidence to conclude that mean widths of the troughs is different from 8.46 inches. The population distribution needs to be normal. Normal Probability Plot 8.55 8.5 Width 328 8.45 8.4 8.35 8.3 -3 -2 -1 0 1 2 3 Z Value (c) Box-and-whisker Plot Width 8.3 (d) 8.35 8.4 8.45 8.5 The normal probability plot and the boxplot indicate that the distribution is skewed to the left. Even though the population distribution is not normally distributed, the result obtained in (a) should still be valid due to the Central Limit Theorem as a result of the relatively large sample size of 49. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.33 (a) 329 H0 : µ = 0 H1 : µ ≠ 0 Decision rule: Reject H 0 if |tSTAT| > 1.9842 d.f. = 99 X −µ - 0.00023 Test statistic: t STAT = = = −1.3563 S / n 0.00170/ 100 Decision: Since |tSTAT| < 1.9842, do not reject H 0 . There is not enough evidence to conclude that the mean difference is different from 0.0 inches. (b) (c) (d) X ±t S ⎛ 0.001696 ⎞ = -0.00023 ± 1.9842⎜⎜ ⎟⎟ n 100 ⎠ ⎝ -0.0005665 ≤ µ ≤ 0.0001065 You are 95% confident that the mean difference is somewhere between -0.0005665 and 0.0001065 inches. Since the 95% confidence interval does not contain 0, you do not reject the null hypothesis in part (a). Hence, you will make the same decision and arrive at the same conclusion as in (a). In order for the t test to be valid, the data are assumed to be independently drawn from a population that is normally distributed. Since the sample size is 100, which is considered quite large, the t distribution will provide a good approximation to the sampling distribution of the mean as long as the population distribution is not very skewed. Box-and-whisker Plot Error -0.006 -0.004 -0.002 0 0.002 0.004 0.006 The boxplot suggests that the data has a distribution that is skewed slightly to the right. Given the relatively large sample size of 100 observations, the t distribution should still provide a good approximation to the sampling distribution of the mean. 9.34 (a) H 0 : µ = 5.5 H1 : µ ≠ 5.5 Decision rule: Reject H 0 if |tSTAT| > 2.680 d.f. = 49 X − µ 5.5014 - 5.5 Test statistic: t STAT = = = 0.0935 S / n 0.1058/ 50 Decision: Since |tSTAT| < 2.680, do not reject H 0 . There is not enough evidence to conclude that the mean amount of tea per bag is different from 5.5 grams. s 0.1058 = 5.5014 ± 2.6800 ⋅ n 50 5.46<µ < 5.54 (b) X ±t⋅ (c) With 99% confidence, you can conclude that the population mean amount of tea per bag is somewhere between 5.46 and 5.54 grams. The conclusions are the same. © 2015 Pearson Education Ltd. 330 9.35 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (a) PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 60 0.05 30 79 57.78079862 IntermediateCalculations StandardErroroftheMean 10.5493 DegreesofFreedom 29 t TestStatistic 1.8011 Two-TailTest LowerCriticalValue -2.0452 UpperCriticalValue 2.0452 p -Value 0.0821 Donotrejectthenullhypothesis H 0 : µ = 60 H1 : µ ≠ 60 Decision rule: Reject H 0 if p-value < 0.05. Test statistic: tSTAT = (b) (c) X −µ = 1.8011 S n Decision: Since p-value = 0.0821 > 0.05, do not reject H 0 . There is not enough evidence to conclude that population mean time Facebook time is different from 60 minutes. The population distribution needs to be normal. You could construct charts and observe their appearance. For small- or moderate-sized data sets, construct a stem-and-leaf display or a boxplot. For large data sets, plot a histogram or polygon. You could also compute descriptive numerical measures and compare the characteristics of the data with the theoretical properties of the normal distribution. Compare the mean and median and see if the interquartile range is approximately 1.33 times the standard deviation and if the range is approximately 6 times the standard deviation. Evaluate how the values in the data are distributed. Determine whether approximately two-thirds of the values lie between the mean and ±1 standard deviation. Determine whether approximately four-fifths of the values lie between the mean and ±1.28 standard deviations. Determine whether approximately 19 out of every 20 values lie between the mean ±2 standard deviations. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.35 cont. 331 (d) Boxplot Minutes 0 50 100 150 200 250 NormalProbabilityPlot 300 250 Minutes 200 150 100 50 0 -3 -2 -1 0 ZValue 1 2 3 Both the boxplot and the normal probability plot indicate that the distribution is rightskewed. Hence, the t-test in (a) might not be valid. 9.36 p-value = 1 − 0.9772 = 0.0228 9.37 Since the p-value = 0.0228 is less than 9.38 One-tail hypothesis test would test whether the population mean is less than or more than a specified value. When the entire rejection region is contained in one tail of the sampling distribution of the test statistic, the test is called a one-tail test, or directional test. See illustration 9.5 on page 358. 9.39 Since the p-value = 0.0838 is greater than 9.40 p-value = P(Z < 1.38) = 0.9162 9.41 Since the p-value = 0.9162 > 0.01, do not reject the null hypothesis. 9.42 t = 2.7638 α = 0.05, reject H0. α = 0.01, do not reject H0. © 2015 Pearson Education Ltd. 332 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests 9.43 Since tSTAT = 2.39 < 2.7638, do not reject H0. 9.44 t = -2.5280 9.45 Since tSTAT = -1.15 > -2.5280, do not reject H0. 9.46 (a) PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 3900 0.05 100 3975 275 IntermediateCalculations StandardErroroftheMean 27.5000 DegreesofFreedom 99 t TestStatistic 2.7273 Upper-TailTest UpperCriticalValue 1.6604 p -Value 0.0038 Rejectthenullhypothesis CalculationsArea H 0 : µ ≤ 36.5 H1 : µ > 36.5 Decision rule: Reject H 0 if p-value < 0.05 d.f. = 99 X −µ Test statistic: tSTAT = = 2.7273 S/ n p-value = 0.0038 Decision: Since the p-value of 0.0038 < 0.05, reject H 0 . There is enough evidence to (b) conclude that the population mean bus miles is more than 3,900 bus miles. The p-value is 0.0038. If the population mean is indeed no more than 3900 hours, the probability of obtaining a test statistic that is more than 2.7273 is 0.0038. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.47 (a) H0 : π = 32 H1 : π ≠ 32 Decision rule: Reject H0 if p-value < 0.05 d.f. = 49 𝑡"#$# = (b) 𝑋−𝜇 30 − 32 = = −1.42 𝑆 10 𝑛 50 p-value = 0.0818 Decision: Since |tSTAT| > 2.0096 and the p-value of 0.0818 < 0.05, reject H0. There is no enough evidence that the population average is more than 32 minutes. Since the value of t-stat is negative, the rejection area will lie in the lower tail. © 2015 Pearson Education Ltd. 333 334 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests 9.48 PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 25 0.01 355 23.05 16.83 IntermediateCalculations StandardErroroftheMean 0.8932 DegreesofFreedom 354 t TestStatistic -2.1831 (a) Lower-TailTest LowerCriticalValue -2.3369 p -Value 0.0148 Donotrejectthenullhypothesis H0: µ ≥ 25 H1: µ < 25 Decision rule: If p-value < 0.01, reject H0. Test statistic: tSTAT = (b) 9.49 H 0: H 1: (a) (c) (d) X –µ = = -2.1831 S n p-value = 0.0148 Decision: Since p-value = 0.0148 > 0.01, do not reject H0. There is not enough evidence to conclude the population mean wait time is less than 25 minutes. The probability of obtaining a test statistic that is -2.1831 or lower when the null hypothesis is true is essentially 0.0148. µ ≥ 25 min. µ < 25 min. The mean delivery time is not less than 25 minutes. The mean delivery time is less than 25 minutes. Decision rule: If tSTAT < – 1.6896, reject H0. Test statistic: t STAT = (b) CalculationsArea X – µ 22.4 – 25 = – 2.6 = S 6 n 36 Decision: Since tSTAT = – 2.6 is less than –1.6896, reject H0. There is enough evidence to conclude the population mean delivery time has been reduced below the previous value of 25 minutes. Decision rule: If p value < 0.05, reject H0. p value = 0.0068 Decision: Since p value = 0.0068 is less than α = 0.05, reject H0. There is enough evidence to conclude the populationmean delivery time has been reduced below the previous value of 25 minutes. The probability of obtaining a sample whose mean is 22.4 minutes or less when the null hypothesis is true is 0.0068. The conclusions are the same. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.50 335 PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 70 0.01 55 75 9 IntermediateCalculations StandardErroroftheMean 1.2136 DegreesofFreedom 54 t TestStatistic 4.1201 Upper-TailTest UpperCriticalValue 2.3974 p -Value 0.0001 Rejectthenullhypothesis (a) H0: µ ≤ $70 H1: µ > $70 Decision rule: If the p-value < 0.01, reject H0. Test statistic: tSTAT = (b) CalculationsArea X –µ = 4.1201 S n p-value = 0.0001 Decision: Since the p-value is less than 0.01, reject H0. There is enough evidence to conclude that the mean one-time gift donation is greater than $70. When the null hypothesis is true, the probability of obtaining a sample whose test statistic is 4.1201 or more is 0.0001. © 2015 Pearson Education Ltd. 336 9.51 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (a) PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 4 0.05 100 3.25 2.7 IntermediateCalculations StandardErroroftheMean 0.2700 DegreesofFreedom 99 t TestStatistic -2.7778 Lower-TailTest LowerCriticalValue -1.6604 p -Value 0.0033 Rejectthenullhypothesis H0: µ ≥ 4 min. H1: µ < 4 min. Decision rule: If tSTAT < – 1.6604, reject H0. Test statistic: tSTAT = (b) (c) (d) CalculationsArea X –µ = -2.7778 S n Decision: Since tSTAT = -2.7778 is less than –1.6604, reject H0. There is enough evidence to conclude the population mean waiting time is less than 4 minutes. Decision rule: If p value < 0.05, reject H0. p value = 0.0033 Decision: Since p value = 0.0033 is less than α = 0.05, reject H0. There is enough evidence to conclude the population mean waiting time is less than 4 minutes. The probability of obtaining a sample whose mean is 3.25 minutes or less when the null hypothesis is true is 0.0033. The conclusions are the same. X 88 = 0.22 = n 400 9.52 p= 9.53 Z STAT = p −π π (1 − π ) or Z STAT = = 0.22 − 0.20 = 1.00 0.20(0.8) n 400 X − nπ 88 − 400(0.20 ) = 1.00 = nπ (1 − π ) 400(0.20 )(0.80 ) © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.54 H0: π = 0.20 H1: π ≠ 0.20 Decision rule: If Z < – 1.96 or Z > 1.96, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = 0.22 − 0.20 0.20(0.8) 400 n = 1.00 Decision: Since Z = 1.00 is between the critical bounds of 9.55 337 (a) ± 1.96, do not reject H0. PHStat output: ZTestofHypothesisfortheProportion Data NullHypothesisπ = LevelofSignificance NumberofItemsofInterest SampleSize 0.4000 0.05 25 60 IntermediateCalculations SampleProportion 0.416666667 StandardError 0.0632 ZTestStatistic 0.2635 Two-TailTest LowerCriticalValue -1.9600 UpperCriticalValue 1.9600 p -Value 0.7921 Donotrejectthenullhypothesis H0: π = 0.4 H1: π ≠ 0.4 Decision rule: p-value < 0.05, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = 0.2635 p-value = 0.7921 n Decision: Since p-value = 0.7921 > 0.05, do not reject H0. There is not enough evidence that the proportion of full-time students at the university who are employed is different from the national norm of 0.40. © 2015 Pearson Education Ltd. 338 9.55 cont. Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (b) PHStat output: ZTestofHypothesisfortheProportion Data NullHypothesisπ = LevelofSignificance NumberofItemsofInterest SampleSize 0.4000 0.05 32 60 IntermediateCalculations SampleProportion 0.533333333 StandardError 0.0632 ZTestStatistic 2.1082 Two-TailTest LowerCriticalValue -1.9600 UpperCriticalValue 1.9600 p -Value 0.0350 Rejectthenullhypothesis H0: π = 0.4 H1: π ≠ 0.4 Decision rule: p-value < 0.05, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = 2.1082 p-value = 0.0350 n Decision: Since p-value = 0.0350 < 0.05, reject H0. There is enough evidence that the proportion of full-time students at the university who are employed is different from the national norm of 0.40. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.56 (a) H0: π ≤ 0.5 H1: π > 0.5 Decision rule: p-value < 0.05, reject H0. (b) Z STAT = p −π π (1 − π ) n p = 235/500 = 0.47 𝑍"#$# = 𝑜. 47 − 0.50 0.50 (0.50)/500 = −1.34 p = 0.0899 Since, p > 0.05, do not reject H0. There is not enough evidence that the awareness regarding the test is greater than 50%. © 2015 Pearson Education Ltd. 339 340 9.56 cont. Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (c) 𝑍"#$# = (d) 𝑜. 47 − 0.50 0.50 (0.50)/100 = 0.6 p = 0.2743 Since, p > 0.05, do not reject H0. There is not enough evidence that the awareness regarding the test is greater than 50%. The Centre for Disease Control and Prevention, using the results, can presume that the awareness regarding the test is not greater than 50%. Thus, the centre can take appropriate measures to spread the awareness to reach the expected awareness level. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.57 341 PHStat output: Z Test of Hypothesis for the Proportion Data Null Hypothesis π= Level of Significance Number of Successes Sample Size 0.55 0.05 9 17 Intermediate Calculations Sample Proportion 0.529411765 Standard Error 0.12065995 Z Test Statistic -0.170630232 Two-Tail Test Lower Critical Value -1.959963985 Upper Critical Value 1.959963985 p-Value 0.864514525 Do not reject the null hypothesis H0: π = 0.55 H1: π ≠ 0.55 Decision rule: If ZSTAT < – 1.96 or ZSTAT > 1.96, reject H0. Test statistic: Z STAT = p −π π (1 − π ) n = 0.5294 − 0.55 0.55 (1 − 0.55 ) 17 = −0.1706 Decision: Since ZSTAT = −0.1706 is between the two critical bounds, do not reject H0. There is not enough evidence that the proportion of females in this position at this medical center is different from what would be expected in the general workforce. © 2015 Pearson Education Ltd. 342 9.58 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests PHStat output: ZTestofHypothesisfortheProportion Data NullHypothesisπ = LevelofSignificance NumberofItemsofInterest SampleSize 0.3500 0.05 328 801 IntermediateCalculations SampleProportion 0.40948814 StandardError 0.0169 ZTestStatistic 3.5298 Two-TailTest LowerCriticalValue -1.9600 UpperCriticalValue 1.9600 p -Value 0.0004 Rejectthenullhypothesis H0: π = 0.35 H1: π ≠ 0.35 Decision rule: If ZSTAT < – 1.96 or ZSTAT > 1.96 or if p-value < 0.05, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = 3.5298 n Decision: Since ZSTAT = 3.5298 is greater than the upper critical bound of 1.96, reject H0. You conclude that there is enough evidence the proportion of all LinkedIn members who plan to spend at least $1,000 on consumer electronics in the coming year is different from 35%. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.59 343 PHStat output: ZTestofHypothesisfortheProportion Data NullHypothesisπ = LevelofSignificance NumberofItemsofInterest SampleSize 0.2000 0.05 135 500 IntermediateCalculations SampleProportion 0.27 StandardError 0.0179 ZTestStatistic 3.9131 (a) Upper-TailTest UpperCriticalValue 1.6449 p -Value 0.0000 Rejectthenullhypothesis H0: π ≤ 0.2 H1: π > 0.2 Decision rule: If ZSTAT > 1.6449 or p-value < 0.05, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = 3.9131 n (b) Decision: Since ZSTAT = 3.9131 is larger than the critical bound of 1.6449, reject H0. There is enough evidence to conclude that more than 20% of the customers would upgrade to a new cellphone. The manager in charge of promotional programs concerning residential customers can use the results in (a) to try to convince potential customers to upgrade to a new cellphone since more than 20% of all potential customers will do so based on the conclusion in (a). © 2015 Pearson Education Ltd. 344 9.60 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (a) ZTestofHypothesisfortheProportion Data NullHypothesisπ = LevelofSignificance NumberofItemsofInterest SampleSize 0.3100 0.05 28 100 IntermediateCalculations SampleProportion 0.28 StandardError 0.0462 ZTestStatistic -0.6487 (b) Lower-TailTest LowerCriticalValue -1.6449 p -Value 0.2583 Donotrejectthenullhypothesis H0: π ≥ 0.31 H1: π < 0.31 Decision rule: If p-value < 0.05, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = -0.6487, p-value = 0.2583 n Decision: Since p-value = 0.2583 > 0.05, do not reject H0. There is not enough evidence to show that the percentage is less than 31%. 9.61 The null hypothesis represents the status quo or the hypothesis that is to be disproved. The null hypothesis includes an equal sign in its definition of a parameter of interest. The alternative hypothesis is the opposite of the null hypothesis and usually represents taking an action. The alternative hypothesis includes either a less than sign, a not equal to sign, or a greater than sign in its definition of a parameter of interest. 9.62 A Type I error represents rejecting a true null hypothesis, while a Type II error represents not rejecting a false null hypothesis. 9.63 When population standard deviation is not known, which is a real business scenario in many cases. 9.64 When the sample size is less than 30, it cannot be normally assumed that the population is normally distributed. Thus, for small sample size, nonparametric tests are more appropriate. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 345 9.65 The p-value is the probability of obtaining a test statistic equal to or more extreme than the result obtained from the sample data, given that the null hypothesis is true. 9.66 Assuming a two-tailed test is used, if the hypothesized value for the parameter does not fall into the confidence interval, then the null hypothesis can be rejected. 9.67 The following are the 6-step critical value approach to hypothesis testing: (1) State the null hypothesis H0. State the alternative hypothesis H1. (2) Choose the level of significance α . Choose the sample size n. (3) Determine the appropriate statistical technique and corresponding test statistic to use. (4) Set up the critical values that divide the rejection and nonrejection regions. (5) Collect the data and compute the sample value of the appropriate test statistic. (6) Determine whether the test statistic has fallen into the rejection or the nonrejection region. The computed value of the test statistic is compared with the critical values for the appropriate sampling distribution to determine whether it falls into the rejection or nonrejection region. Make the statistical decision. If the test statistic falls into the nonrejection region, the null hypothesis H0 cannot be rejected. If the test statistic falls into the rejection region, the null hypothesis is rejected. Express the statistical decision in terms of a particular situation. 9.68 The following are the 5-step p-value approach to hypothesis testing: (1) State the null hypothesis, H0, and the alternative hypothesis, H1. (2) Choose the level of significance, α, and the sample size, n. (3) Determine the appropriate test statistic and the sampling distribution. (4) Collect the sample data, compute the value of the test statistic, and compute the p-value. (5) Make the statistical decision and state the managerial conclusion. If the p-value is greater than or equal to α, you do not reject the null hypothesis, H0. If the p-value is less than α, you reject the null hypothesis. 9.69 (a) H 0 : π = 0.5 (b) The level of significance is the probability of committing a Type I error, which is the probability of concluding that the population proportion of web page visitors preferring the new design is not 0.50 when in fact 50% of the population proportion of web page visitors prefer the new design. The risk associated with Type II error is the probability of not rejecting the claim that 50% of the population proportion of web page visitors prefer the new design when it should be rejected. If you reject the null hypothesis for a p-value of 0.20, there is a 20% probability that you may have incorrectly concluded that the population proportion of web page visitors preferring the new design is not 0.50 when in fact 50% of the population proportion of web page visitors prefer the new design. The argument for raising the level of significance might be that the consequences of incorrectly concluding the proportion is not 50% are deemed not very severe. Before raising the level of significance of a test, you have to genuinely evaluate whether the cost of committing a Type I error is really not as bad as you have thought. If the p-value is actually 0.12, you will be more confident about rejecting the null hypothesis. If the p-value is 0.06, you will be even more confident that a Type I error is much less likely to occur. (c) (d) (e) (f) H1 : π ≠ 0.5 © 2015 Pearson Education Ltd. 346 9.70 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (a) (b) (c) (d) A Type I error occurs when a firm is predicted to be a bankrupt firm when it will not. A Type II error occurs when a firm is predicted to be a non-bankrupt firm when it will go bankrupt. The executives are trying to avoid a Type I error by adopting a very stringent decision criterion. Only firms that show significant evidence of being in financial stress will be predicted to go bankrupt within the next two years at the chosen level of the possibility of making a Type I error. If the revised model results in more moderate or large Z scores, the probability of committing a Type I error will increase. Many more of the firms will be predicted to go bankrupt than will go bankrupt. On the other hand, the revised model that results in more moderate or large Z scores will lower the probability of committing a Type II error because few firms will be predicted to go bankrupt than will actually go bankrupt. 9.71 (a) . H0: µ ≤ 1000 H1: µ > 0.5 Decision rule: Reject H0 if p-value < 0.05 d.f. = 49. tSTAT = (b) (c) (d) X − µ 1200 − 1000 = = 2.83 S 500 n 50 Decision: Since |tSTAT| > 2.0096, reject H0. Thus, there is not enough evidence to believe that the insurance claim is less than $1000. p-value = 0.0033 Decision: the p-value of 0.0033 < 0.05, reject H0. Thus, there is not enough evidence to believe that the insurance claim is less than $1000. The probability of obtaining a sample whose mean is $1200 or less when the null hypothesis is true is 0.0033. The conclusions are the same. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.72 (a) 347 PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 6.5 0.05 60 7.25 1.75 IntermediateCalculations StandardErroroftheMean 0.2259 DegreesofFreedom 59 t TestStatistic 3.3197 Two-TailTest LowerCriticalValue -2.0010 UpperCriticalValue 2.0010 p -Value 0.0015 Rejectthenullhypothesis H0: µ = $6.50 H1: µ ≠ $6.50 Decision rule: d.f. = 59. If p-value < 0.05, reject H0. Test statistic: tSTAT = (b) (c) X –µ = = 3.3197 S n p-value = 0.0015 Decision: Since p-value < 0.05, reject H0. There is enough evidence to conclude that the mean amount spent differs from $6.50 p-value = 0.0015. Note: The-p value was found using Excel. PHStat output: ZTestofHypothesisfortheProportion Data NullHypothesisπ = LevelofSignificance NumberofItemsofInterest SampleSize 0.5 0.05 31 60 IntermediateCalculations SampleProportion 0.516666667 StandardError 0.0645 ZTestStatistic 0.2582 Upper-TailTest UpperCriticalValue 1.6449 p -Value 0.3981 Donotrejectthenullhypothesis © 2015 Pearson Education Ltd. 348 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests 9.72 cont. H0: π ≤ 0.50. H1: π > 0.50. Decision rule: If p-value < 0.05, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = = 0.2582 p-value = 0.3981 n (d) Decision: Since p-value > 0.05, do not reject H0. There is not sufficient evidence to conclude that more than 50% of customers say they "definitely will" recommend the specialty coffee shop to family and friends. PHStat output: tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 6.5 0.05 60 6.25 1.75 IntermediateCalculations StandardErroroftheMean 0.2259 DegreesofFreedom 59 t TestStatistic -1.1066 Two-TailTest LowerCriticalValue -2.0010 UpperCriticalValue 2.0010 p -Value 0.2730 Donotrejectthenullhypothesis H0: µ = $6.50 H1: µ ≠ $6.50 Decision rule: d.f. = 59. If p-value < 0.05, reject H0. Test statistic: t = X – µ 6.25 – 6.5 = -1.1066 = S 1.75 n 60 p-value = 0.2730 Decision: Since the p-value > 0.05, do not reject H0. There is not enough evidence to conclude that the mean amount spent differs from $6.50. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.72 cont. (e) 349 PHStat output: ZTestofHypothesisfortheProportion Data NullHypothesisπ = LevelofSignificance NumberofItemsofInterest SampleSize 0.5 0.05 39 60 IntermediateCalculations SampleProportion 0.65 StandardError 0.0645 ZTestStatistic 2.3238 Upper-TailTest UpperCriticalValue 1.6449 p -Value 0.0101 Rejectthenullhypothesis H0: π ≤ 0.50. H1: π > 0.50. Decision rule: If p-value < 0.05, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = = 2.3238 p-value = 0.0101 n Decision: Since p-value < 0.05, reject H0. There is sufficient evidence to conclude that more than 50% of customers say they "definitely will" recommend the specialty coffee shop to family and friends. 9.73 (a) H0: µ ≥ $100 H1: µ < $100 Decision rule: d.f. = 74. If tSTAT < – 1.6657, reject H0. Test statistic: t STAT = X – µ $93.70 – $100 = – 1.5791 = S $34.55 n 75 Decision: Since the test statistic of tSTAT = – 1.5791 is greater than the critical bound of –1.6657, do not reject H0. There is not enough evidence to conclude that the mean reimbursement for office visits to doctors paid by Medicare is less than $100. © 2015 Pearson Education Ltd. 350 9.73 cont. Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (b) H0: π ≤ 0.10. At most 10% of all reimbursements for office visits to doctors paid by Medicare are incorrect. H1: π > 0.10. More than 10% of all reimbursements for office visits to doctors paid by Medicare are incorrect. Decision rule: If ZSTAT > 1.645, reject H0. Test statistic: Z STAT = p −π π (1 − π ) = n (c) (d) 0.10(1 − 0.10) 75 = 1.73 Decision: Since ZSTAT = 1.73 is greater than the critical bound of 1.645, reject H0. There is sufficient evidence to conclude that more than 10% of all reimbursements for office visits to doctors paid by Medicare are incorrect. To perform the t-test on the population mean, you must assume that the observed sequence in which the data were collected is random and that the data are approximately normally distributed. H0: µ ≥ $100. The mean reimbursement for office visits to doctors paid by Medicare is at least $100. H1: µ < $100. The mean reimbursement for office visits to doctors paid by Medicare is less than $100. Decision rule: d.f. = 74. If tSTAT < – 1.6657, reject H0. X – µ $90 – $100 = – 2.5066 = S $34.55 n 75 Test statistic: t STAT = (e) 0.16 - 0.10 Decision: Since tSTAT = – 2.5066 is less than the critical bound of – 1.6657, reject H0. There is enough evidence to conclude that the mean reimbursement for office visits to doctors paid by Medicare is less than $100. H0: π ≤ 0.10. At most 10% of all reimbursements for office visits to doctors paid by Medicare are incorrect. H1: π > 0.10. More than 10% of all reimbursements for office visits to doctors paid by Medicare are incorrect. Decision rule: If ZSTAT > 1.645, reject H0. Test statistic: Z STAT = p −π π (1 − π ) n = 0.20 - 0.10 0.10(1 − 0.10) 75 = 2.89 Decision: Since ZSTAT = 2.89 is greater than the critical bound of 1.645, reject H0. There is sufficient evidence to conclude that more than 10% of all reimbursements for office visits to doctors paid by Medicare are incorrect. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems (a) H0: µ ≥ 5 minutes. The mean waiting time at a bank branch in a commercial district of the city is at least 5 minutes during the 12:00 p.m. to 1 p.m. peak lunch period. H1: µ < 5 minutes. The mean waiting time at a bank branch in a commercial district of the city is less than 5 minutes during the 12:00 p.m. to 1 p.m. peak lunch period. Decision rule: d.f. = 14. If tSTAT < – 1.7613, reject H0. Test statistic: t STAT = (b) (c) X – µ 4.2866 – 5.0 = – 1.6867 = S 1.637985 n 15 Decision: Since tSTAT = – 1.6867 is greater than the critical bound of – 1.7613, do not reject H0. There is not enough evidence to conclude that the mean waiting time at a bank branch in a commercial district of the city is less than 5 minutes during the 12:00 p.m. to 1 p.m. peak lunch period. To perform the t-test on the population mean, you must assume that the observed sequence in which the data were collected is random and that the data are approximately normally distributed. Normal probability plot: Normal Probability Plot 7 6 5 Waiting Time 9.74 4 3 2 1 0 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 Z Value (d) (e) 351 With the exception of one extreme point, the data are approximately normally distributed. Based on the results of (a), the manager does not have enough evidence to make that statement. © 2015 Pearson Education Ltd. 352 9.75 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (a) (b) H 0 : µ ≤ 1500 H1 : µ > 1500 Decision rule: Reject H 0 if tSTAT > 1.6991 d.f. = 29 X – µ 1723.4 – 1500 Test statistic: t STAT = = = 13.664 S 89.55 n 30 Decision: Since tSTAT = 13.664 > 1.6991, reject H 0 . There is enough evidence to conclude that the mean force is greater than 1500 pounds. In order for the t test to be valid, the data are assumed to be independently drawn from a population that is normally distributed. (c) Box-and-whisker Plot Force 1500 (d) 9.76 (a) (b) 1550 1600 1650 1700 1750 1800 1850 1900 The boxplot suggests that the distribution of the data is skewed only slightly to the left. With a sample size of 30, the t distribution will provide a good approximation to the sampling distribution of the sample mean. Based on (a), you can conclude that the mean force is greater than 1500 pounds, especially in light of p-value = 0.0. H 0 : µ ≥ 0.35 H1 : µ < 0.35 Decision rule: Reject H 0 if tSTAT < −1.690 d.f. = 35 X – µ 0.3167 – 0.35 Test statistic: t STAT = = = −1.4735 S 0.1357 n 36 Decision: Since tSTAT > −1.690, do not reject H 0 . There is not enough evidence to conclude that the mean moisture content for Boston shingles is less than 0.35 pounds per 100 square feet. p-value = 0.0748. If the population mean moisture content is in fact no less than 0.35 pounds per 100 square feet, the probability of observing a sample of 36 shingles that will result in a sample mean moisture content of 0.3167 pounds per 100 square feet or less is .0748. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.76 (c) cont. (d) (e) 353 H 0 : µ ≥ 0.35 H1 : µ < 0.35 Decision rule: Reject H 0 if tSTAT < -1.6973 d.f. = 30 X – µ 0.2735 – 0.35 Test statistic: t STAT = = = −3.1003 S 0.1373 n 31 Decision: Since tSTAT < -1.6973, reject H 0 . There is enough evidence to conclude that the mean moisture content for Vermont shingles is less than 0.35 pounds per 100 square feet. p-value = 0.0021. If the population mean moisture content is in fact no less than 0.35 pounds per 100 square feet, the probability of observing a sample of 31 shingles that will result in a sample mean moisture content of 0.2735 pounds per 100 square feet or less is .0021. In order for the t test to be valid, the data are assumed to be independently drawn from a population that is normally distributed. Since the sample sizes are 36 and 31, respectively, which are considered quite large, the t distribution will provide a good approximation to the sampling distribution of the mean as long as the population distribution is not very skewed. (f) Box-and-whisker Plot (Boston) 0 0.2 0.4 0.6 0.8 1 0.8 1 Box-and-whisker Plot (Vermont) 0 0.2 0.4 0.6 Both boxplots suggest that the data are skewed slightly to the right, more so for the Boston shingles. However, the very large sample sizes mean that the results of the t test are relatively insensitive to the departure from normality. © 2015 Pearson Education Ltd. 354 9.77 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (a) (b) (c) (d) (e) H 0 : µ = 3150 H1 : µ ≠ 3150 Decision rule: Reject H 0 if |tSTAT| > 1.9665 d.f. = 367 X – µ 3124.2147 – 3150 Test statistic: t STAT = = = −14.2497 S 34.713 n 368 Decision: Since tSTAT < −1.9665, reject H 0 . There is enough evidence to conclude that the mean weight for Boston shingles is different from 3150 pounds. p-value is virtually zero. If the population mean weight is in fact 3150 pounds, the probability of observing a sample of 368 shingles that will yield a test statistic more extreme than –14.2497 is virtually zero. H 0 : µ = 3700 H1 : µ ≠ 3700 Decision rule: Reject H 0 if |tSTAT| > 1.967 d.f. = 329 X – µ 3704.0424 – 3700 Test statistic: t STAT = = = 1.571 S 46.7443 n 330 Decision: Since tSTAT < 1.967, do not reject H 0 . There is not enough evidence to conclude that the mean weight for Vermont shingles is different from 3700 pounds. p-value = .1171. The probability of observing a sample of 330 shingles that will yield a test statistic more extreme than 1.571 is 0.1171 if the population mean weight is in fact 3700 pounds. In order for the t test to be valid, the data are assumed to be independently drawn from a population that is normally distributed. Since the sample sizes are 368 and 330, respectively, which are considered large enough, the t distribution will provide a good approximation to the sampling distribution of the mean even if the population is not normally distributed. © 2015 Pearson Education Ltd. Solutions to End-of-Section and Chapter Review Problems 9.78 (a) H 0 : µ = 0.3 355 H1 : µ ≠ 0.3 tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 0.3 0.05 170 0.26 0.142382504 IntermediateCalculations StandardErroroftheMean 0.0109 DegreesofFreedom 169 t TestStatistic -3.2912 Two-TailTest LowerCriticalValue -1.9741 UpperCriticalValue 1.9741 p -Value 0.0012 Rejectthenullhypothesis Decision rule: Reject H 0 if |tSTAT| > 1.9741 d.f. = 169 Test statistic: tSTAT = (b) X –µ = -3.2912, S n p-value = 0.0012 Decision: Since tSTAT < −1.9741, reject H 0 . There is enough evidence to conclude that the mean granule loss for Boston shingles is different from 0.3 grams. p-value is virtually zero. If the population mean granule loss is in fact 0.3 grams, the probability of observing a sample of 170 shingles that will yield a test statistic more extreme than -3.2912 is 0.0012. © 2015 Pearson Education Ltd. 356 9.78 Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests (c) H 0 : µ = 0.5 H1 : µ ≠ 0.5 cont. tTestforHypothesisoftheMean Data NullHypothesisµ= LevelofSignificance SampleSize SampleMean SampleStandardDeviation 0.3 0.05 140 0.22 0.122698672 IntermediateCalculations StandardErroroftheMean 0.0104 DegreesofFreedom 139 t TestStatistic -7.9075 Two-TailTest LowerCriticalValue -1.9772 UpperCriticalValue 1.9772 p -Value 0.0000 Rejectthenullhypothesis Decision rule: Reject H 0 if |tSTAT| > 1.9772 Test statistic: tSTAT = (d) (e) d.f. = 139 X –µ = -7.9075 S n Decision: Since tSTAT < −1.977, reject H 0 . There is enough evidence to conclude that the mean granule loss for Vermont shingles is different from 0.3 grams. p-value is virtually zero. The probability of observing a sample of 140 shingles that will yield a test statistic more extreme than -1.977 is virtually zero if the population mean granule loss is in fact 0.3 grams. In order for the t test to be valid, the data are assumed to be independently drawn from a population that is normally distributed. Both normal probability plots indicate that the data are slightly right-skewed. Since the sample sizes are 170 and 140, respectively, which are considered large enough, the t distribution will provide a good approximation to the sampling distribution of the mean even if the population is not normally distributed. © 2015 Pearson Education Ltd.