Chapter 9 Hypothesis Tests Learning Objectives 1. Learn how to formulate and test hypotheses about a population mean and/or a population proportion. 2. Understand the types of errors possible when conducting a hypothesis test. 3. Be able to determine the probability of making these errors in hypothesis tests. 4. Know how to compute and interpret p-values. 5. Be able to use critical values to draw hypothesis testing conclusions. 6. Be able to determine the size of a simple random sample necessary to keep the probability of hypothesis testing errors within acceptable limits. 7. Know the definition of the following terms: null hypothesis alternative hypothesis Type I error Type II error one-tailed test two-tailed test p-value level of significance critical value power curve 9-1 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 Solutions: 1. 2. 3. 4. 5. a. H0: 600 Ha: > 600 b. We are not able to conclude that the manager’s claim is wrong. c. The manager’s claim can be rejected. We can conclude that > 600. a. H0: 14 Ha: > 14 Manager’s claim. Research hypothesis b. There is no statistical evidence that the new bonus plan increases sales volume. c. The research hypothesis that > 14 is supported. We can conclude that the new bonus plan increases the mean sales volume. a. H0: = 32 Ha: 32 b. There is no evidence that the production line is not operating properly. Allow the production process to continue. c. Conclude 32 and that overfilling or underfilling exists. Shut down and adjust the production line. a. H0: 220 Ha: < 220 Specified filling weight Overfilling or underfilling exists Research hypothesis to see if mean cost is less than $220. b. We are unable to conclude that the new method reduces costs. c. Conclude < 220. Consider implementing the new method based on the conclusion that it lowers the mean cost per hour. a. Conclude that the population mean monthly cost of electricity in the Chicago neighborhood is greater than $104 and hence higher than in the comparable neighborhood in Cincinnati. b. The Type I error is rejecting H0 when it is true. This error occurs if the researcher concludes that the population mean monthly cost of electricity is greater than $104 in the Chicago neighborhood when the population mean cost is actually less than or equal to $104. 6. c. The Type II error is accepting H0 when it is false. This error occurs if the researcher concludes that the population mean monthly cost for the Chicago neighborhood is less than or equal to $104 when it is not. a. H0: 1 Ha: > 1 b. Claiming > 1 when it is not. This is the error of rejecting the product’s claim when the claim is true. c. Concluding 1 when it is not. In this case, we miss the fact that the product is not meeting its label specification. The label claim or assumption. 9-2 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests 7. 8. 9. a. H0: 8000 Ha: > 8000 Research hypothesis to see if the plan increases average sales. b. Claiming > 8000 when the plan does not increase sales. A mistake could be implementing the plan when it does not help. c. Concluding 8000 when the plan really would increase sales. This could lead to not implementing a plan that would increase sales. a. H0: 220 Ha: < 220 b. Claiming < 220 when the new method does not lower costs. A mistake could be implementing the method when it does not help. c. Concluding 220 when the method really would lower costs. This could lead to not implementing a method that would lower costs. a. z= b. Lower tail p-value is the area to the left of the test statistic x − 0 / n = 19.4 − 20 2 / 50 = −2.12 Using normal table with z = -2.12: p-value =.0170 c. p-value .05, reject H0 d. Reject H0 if z -1.645 -2.12 -1.645, reject H0 10. a. b. z= x − 0 / n = 26.4 − 25 6 / 40 = 1.48 Upper tail p-value is the area to the right of the test statistic Using normal table with z = 1.48: p-value = 1.0000 - .9306 = .0694 c. p-value > .01, do not reject H0 d. Reject H0 if z 2.33 1.48 < 2.33, do not reject H0 11. a. b. z= x − 0 / n = 14.15 − 15 3 / 50 = −2.00 Because z < 0, p-value is two times the lower tail area Using normal table with z = -2.00: p-value = 2(.0228) = .0456 c. p-value .05, reject H0 9-3 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 d. Reject H0 if z -1.96 or z 1.96 -2.00 -1.96, reject H0 12. a. z= x − 0 / n = 78.5 − 80 12 / 100 = −1.25 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -1.25: p-value =.1056 p-value > .01, do not reject H0 b. z= x − 0 / n = 77 − 80 12 / 100 = −2.50 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -2.50: p-value =.0062 p-value .01, reject H0 c. z= x − 0 / n = 75.5 − 80 12 / 100 = −3.75 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -3.75: p-value ≈ 0 p-value .01, reject H0 d. z= x − 0 / n = 81 − 80 12 / 100 = .83 Lower tail p-value is the area to the left of the test statistic Using normal table with z = .83: p-value =.7967 p-value > .01, do not reject H0 Reject H0 if z 1.645 13. a. b. z= x − 0 / n = 52.5 − 50 8 / 60 = 2.42 2.42 1.645, reject H0 x − 0 51 − 50 z= = = .97 / n 8 / 60 .97 < 1.645, do not reject H0 9-4 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests c. z= x − 0 / n = 51.8 − 50 = 1.74 8 / 60 1.74 1.645, reject H0 14. a. z= x − 0 / n = 23 − 22 10 / 75 = .87 Because z > 0, p-value is two times the upper tail area Using normal table with z = .87: p-value = 2(1 - .8078) = .3844 p-value > .01, do not reject H0 b. z= x − 0 25.1 − 22 = = 2.68 / n 10 / 75 Because z > 0, p-value is two times the upper tail area Using normal table with z = 2.68: p-value = 2(1 - .9963) = .0074 p-value .01, reject H0 c. z= x − 0 / n = 20 − 22 10 / 75 = −1.73 Because z < 0, p-value is two times the lower tail area Using normal table with z = -1.73: p-value = 2(.0418) = .0836 p-value > .01, do not reject H0 15. a. b. H0: Ha: < 1056 z= x − 0 / n = 910 − 1056 1600 / 400 = −1.83 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -1.83: p-value =.0336 c. p-value .05, reject H0. Conclude the mean refund of “last minute” filers is less than $1056. d. Reject H0 if z -1.645 -1.83 -1.645, reject H0 9-5 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 16. a. b. H0: 3173 Ha: > 3173 z= x − 0 / n = 3325 − 3173 1000 / 180 = 2.04 p-value = 1.0000 - .9793 = .0207 c. 17. a. b. p-value < .05. Reject H0. The current population mean credit card balance for undergraduate students has increased compared to the previous all-time high of $3173 reported in the original report. H0: = 24.57 Ha: 24.57 z= x − 0 / n = 23.89 − 24.57 2.4 / 30 = −1.55 Because z < 0, p-value is two times the lower tail area Using normal table with z = -1.55: p-value = 2(.0606) = .1212 c. p-value > .05, do not reject H0. We cannot conclude that the population mean hourly wage for manufacturing workers differs significantly from the population mean of $24.57 for the goodsproducing industries. d. Reject H0 if z -1.96 or z 1.96 z = -1.55; cannot reject H0. The conclusion is the same as in part (c). 18. a. b. H0: = 192 Ha: 192 z= x − 0 / n = 182 − 192 55 / 150 = −2.23 Because z < 0, p-value is two times the lower tail area Using normal table with z = – 2.23: p-value = 2(.0129) = .0258 c. p-value = .0258 = .05 Reject H0 and conclude that the mean number of restaurant meals eaten by young millennials has changed in 2012. 19. H0: ≥ 12 Ha: < 12 z= x − 0 = 10 − 12 = −1.77 n 8 50 9-6 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests p-value is the area in the lower tail Using normal table with z = -1.77: p-value = .0384 p-value .05, reject H0. Conclude that the actual mean waiting time is significantly less than the claim of 12 minutes made by the taxpayer advocate. 20. a. H0: 838 Ha: < 838 x − 0 z= c. Lower tail p-value is area to left of the test statistic. / n = 745 − 838 b. 300 60 = −2.40 Using normal table with z = -2.40: p-value = .0082. d. 21. a. p-value .01; reject H 0 . Conclude that the annual expenditure per person on prescription drugs is less in the Midwest than in the Northeast. H0: 15 Ha: > 15 x − z= c. Upper tail p-value is the area to the right of the test statistic / n = 17 − 15 b. 4 / 35 = 2.96 Using normal table with z = 2.96: p-value = 1.0000 - .9985 = .0015 d. 22. a. b. p-value .01; reject H0; the premium rate should be charged. H0: = 8 Ha: 8 z= x − 8.4 − 8.0 = = 1.37 / n 3.2 / 120 Because z > 0, p-value is two times the upper tail area Using normal table with z = 1.37: p-value = 2(1 - .9147) = .1706 c. d. p-value > .05; do not reject H0. Cannot conclude that the population mean waiting time differs from 8 minutes. x z.025 ( / n ) 8.4 ± 1.96 (3.2 / 120) 8.4 ± .57 (7.83 to 8.97) Yes; = 8 is in the interval. Do not reject H0. 9-7 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 23. a. b. t= x − 0 s/ n = 14 − 12 4.32 / 25 = 2.31 Degrees of freedom = n – 1 = 24 Upper tail p-value is the area to the right of the test statistic Using t table: p-value is between .01 and .025 Exact p-value corresponding to t = 2.31 is .0149 c. p-value .05, reject H0. d. With df = 24, t.05 = 1.711 Reject H0 if t 1.711 2.31 > 1.711, reject H0. 24. a. b. t= x − 0 s/ n = 17 − 18 4.5 / 48 = −1.54 Degrees of freedom = n – 1 = 47 Because t < 0, p-value is two times the lower tail area Using t table: area in lower tail is between .05 and .10; therefore, p-value is between .10 and .20. Exact p-value corresponding to t = -1.54 is .1303 c. p-value > .05, do not reject H0. d. With df = 47, t.025 = 2.012 Reject H0 if t -2.012 or t 2.012 t = -1.54; do not reject H0 25. a. t= x − 0 s/ n = 44 − 45 5.2 / 36 = −1.15 Degrees of freedom = n – 1 = 35 Lower tail p-value is the area to the left of the test statistic Using t table: p-value is between .10 and .20 Exact p-value corresponding to t = -1.15 is .1290 p-value > .01, do not reject H0 9-8 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests b. t= x − 0 s/ n = 43 − 45 4.6 / 36 = −2.61 Lower tail p-value is the area to the left of the test statistic Using t table: p-value is between .005 and .01 Exact p-value corresponding to t = -2.61 is .0066 p-value .01, reject H0 c. t= x − 0 s/ n = 46 − 45 5 / 36 = 1.20 Lower tail p-value is the area to the left of the test statistic Using t table: p-value is between .80 and .90 Exact p-value corresponding to t = 1.20 is .8809 p-value > .01, do not reject H0 26. a. t= x − 0 s/ n = 103 − 100 11.5 / 65 = 2.10 Degrees of freedom = n – 1 = 64 Because t > 0, p-value is two times the upper tail area Using t table; area in upper tail is between .01 and .025; therefore, p-value is between .02 and .05. Exact p-value corresponding to t = 2.10 is .0397 p-value .05, reject H0 b. t= x − 0 s/ n = 96.5 − 100 11/ 65 = −2.57 Because t < 0, p-value is two times the lower tail area Using t table: area in lower tail is between .005 and .01; therefore, p-value is between .01 and .02. Exact p-value corresponding to t = -2.57 is .0125 p-value .05, reject H0 c. t= x − 0 s/ n = 102 − 100 10.5 / 65 = 1.54 Because t > 0, p-value is two times the upper tail area Using t table: area in upper tail is between .05 and .10; therefore, p-value is between .10 and .20. 9-9 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 Exact p-value corresponding to t = 1.54 is .1285 p-value > .05, do not reject H0 27. a. b. H0: 13.04 Ha: < 13.04 t= x − 0 = s/ n 12.75 − 13.04 2 / 100 = −1.45 Degrees of freedom = n – 1 = 99 p-value is the lower tail area at the test statistic Using t table: p-value is between .05 and .10 Exact p-value corresponding to t = -1.45 is .0751 c. p-value > .05; do not reject H0. We cannot conclude that the cost of a restaurant meal is significantly cheaper than a comparable meal fixed at home. d. df = 99 t.05 = -1.66 Reject H0 if t -1.66 -1.45 > -1.66; do not reject H0 28. a. b. H0: 9 Ha: < 9 t= x − 0 s/ n = 7.27 − 9 6.38 / 85 = −2.50 Degrees of freedom = n – 1 = 84 Lower tail p-value is P(t ≤ -2.50) Using t table: p-value is between .005 and .01 Exact p-value corresponding to t = -2.50 is .0072 c. 29. a. b. p-value .01; reject H0. The mean tenure of a CEO is significantly lower than 9 years. The claim of the shareholders group is not valid. H0: = 90,000 Ha: 90,000 t= x − 0 s/ n = 85, 272 − 90,000.00 11,039.23 / 25 = −2.14 Degrees of freedom = n – 1 = 24 Because t < 0, p-value is two times the lower tail area 9 - 10 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests Using t table: area in lower tail is between .01 and .025; therefore, p-value is between .02 and .05. Exact p-value corresponding to t = -2.14 is .0427 c. p-value .05; reject H0. The mean annual administrator salary in Ohio differs significantly from the national mean annual salary. d. df = 24 t.025 = 2.064 Reject H0 if t < -2.064 or t > 2.064 -2.14 < -2.064; reject H0. The conclusion is the same as in part (c). 30. a. b. H0: = 6.4 Ha: 6.4 Using Excel or Minitab, we find x = 7.0 and s = 2.4276 t= x − 0 s/ n = 7.0 − 6.4 2.4276 / 40 = 1.56 df = n - 1 = 39 Because t > 0, p-value is two times the upper tail area at t = 1.56 Using t table: area in upper tail is between .05 and .10; therefore, p-value is between .10 and .20. Exact p-value corresponding to t = 1.56 is .1268 c. Most researchers would choose = .10 or less. If you chose = .10 or less, you cannot reject H0. You are unable to conclude that the population mean number of hours married men with children in your area spend in child care differs from the mean reported by Time. H0: 423 Ha: > 423 31. t= x − 0 s/ n = 460.4 − 423.0 101.9 / 36 = 2.20 Degrees of freedom = n - 1 = 35 Upper tail p-value is the area to the right of the test statistic Using t table: p-value is between .01 and .025. Exact p-value corresponding to t = 2.02 is .0173 Because p-value = .0173 < α, reject H0; Atlanta customers have a higher annual rate of consumption of Coca Cola beverages. 32. a. b. H0: = 10,192 Ha: 10,192 t= x − 0 s/ n = 9750 − 10,192 1400 / 50 = −2.23 9 - 11 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 Degrees of freedom = n – 1 = 49 Because t < 0, p-value is two times the lower tail area Using t table: area in lower tail is between .01 and .025; therefore, p-value is between .02 and .05. Exact p-value corresponding to t = -2.23 is .0304 c. 33. a. p-value .05; reject H0. The population mean price at this dealership differs from the national mean price $10,192. H0: 1503 Ha: < 1503 b. $1440 - $1503 = -$63 c. t= x − 0 s/ n = 1440 − 1503 165 / 25 = −1.91 Degrees of freedom = n – 1 = 24 p-value is lower-tail area Using t table: p-value is between .025 and .05 Exact p-value corresponding to t = -1.91 is .0341 d. 34. a. p-value .05; reject H0. The population mean automobile premium is lower in Pennsylvania than the national mean. H0: = 2 Ha: 2 b. x= c. s= d. t= xi 22 = = 2.2 n 10 ( xi − x ) n −1 x − 0 s/ n = 2 = .516 2.2 − 2 .516 / 10 = 1.22 Degrees of freedom = n - 1 = 9 Because t > 0, p-value is two times the upper tail area Using t table: area in upper tail is between .10 and .20; therefore, p-value is between .20 and .40. Exact p-value corresponding to t = 1.22 is .2535 e. p-value > .05; do not reject H0. No reason to change from the 2 hours for cost estimating purposes. 9 - 12 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests 35. a. b. z= p − p0 p0 (1 − p0 ) n = .175 − .20 .20(1 − .20) 400 = −1.25 Because z < 0, p-value is two times the lower tail area Using normal table with z = -1.25: p-value = 2(.1056) = .2112 c. p-value > .05; do not reject H0 d. z.025 = 1.96 Reject H0 if z -1.96 or z 1.96 z = − 1.25; do not reject H0 36. a. z= p − p0 p0 (1 − p0 ) n = .68 − .75 .75(1 − .75) 300 = −2.80 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -2.80: p-value =.0026 p-value .05; Reject H0 b. z= .72 − .75 .75(1 − .75) 300 = −1.20 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -1.20: p-value =.1151 c. p-value > .05; Do not reject H0 .70 − .75 z= = −2.00 .75(1 − .75) 300 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -2.00: p-value =.0228 p-value .05; Reject H0 d. z= .77 − .75 .75(1 − .75) 300 = .80 Lower tail p-value is the area to the left of the test statistic 9 - 13 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 Using normal table with z = .80: p-value =.7881 p-value > .05; Do not reject H0 37. a. b. H0: p .113 Ha: p > .113 p= z= 52 = .13 400 p − p0 p0 (1 − p0 ) n = .13 − .113 .113(1 − .113) 400 = 1.07 Using normal table with z = 1.07: p-value = 1.0000 - .8577 = .1423 c. 38. a. b. p-value > .05; do not reject H0. We cannot conclude that there has been an increase in union membership. H0: p = .64 Ha: p .64 p= z= 52 = .52 100 p − p0 p0 (1 − p0 ) n = .52 − .64 .64(1 − .64) 100 = −2.50 Because z < 0, p-value is two times the lower tail area Using normal table with z = -2.50: p-value = 2(.0062) = .0124 c. p-value .05; reject H0. Proportion differs from the reported .64. d. Yes. Since p = .52, it indicates that fewer than 64% of the shoppers believe the supermarket brand is as good as the name brand. 39. a. b. H0: p = .577 Ha: p .577 Proportion of stay at home residents in Arkansas p = z= p − p0 p0 (1 − p0 ) n = .6167 − .577 .577(1 − .577) 120 74 = .6167 120 = .88 Because z > 0, p-value is two times the upper tail area Using normal table with z = .88: p-value = 2(.1894) = .3788 9 - 14 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests c. Do not reject H0. Do not conclude that the proportion of stay at home residents in Arkansas is higher than the overall proportion of .577. 89 Stay at home residents in Virginia p = = .494 180 z= .494 − .577 .577(1 − .577) 180 = −2.25 Because z < 0, p-value is two times the lower tail area Using the normal table with z = -2.25: p-value = 2(.0122) = .0244 Reject H0. Conclude that the proportion of stay at home residents in Virginia does differ significantly from the overall proportion of .577. d. 40. a. From the results obtained in parts (b) and (c) we would expect the number of stay at home residents to be higher in Arkansas than Virginia. The sample results show that 61.7% of the current residents of Arkansas were born there while only 49.4 % of the current residents of Virginia were born there. Perhaps the proximity to Washington D. C. causes a number of people to move there from other parts of the country. Sample proportion: p = .35 Number planning to provide holiday gifts: np = 60(.35) = 21 b. H0: p .46 Ha: p < .46 z= p − p0 p0 (1 − p0 ) n = .35 − .46 .46(1 − .46) 60 = −1.71 p-value is area in lower tail Using normal table with z = -1.71: p-value = .0436 c. 41. a. b. Using a .05 level of significance, we can conclude that the proportion of business owners providing gifts has decreased from last year to this year. The smallest level of significance for which we could draw this conclusion is .0436; this corresponds to the p-value = .0436. This is why the p-value is often called the observed level of significance. H0: p .53 Ha: p < .53 z= p − p0 p0 (1 − p0 ) n = .46 − .53 .53(1 − .53) 300 = −2.43 p-value is the lower-tail area at the test statistic Using normal table with z = ˗2.43: p-value =.0075 9 - 15 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 c. 42. a. b. p-value = .01 ; reject H0. We conclude that there has been a statistically significant decline in the proportion of American families owning stocks or stock funds over the ten-year period. p = 12/80 = .15 p(1 − p ) .15(.85) = = .0399 n 80 p z.025 p(1 − p) n .15 1.96 (.0399) .15 .0782 or .0718 to .2282 c. H0: p = .06 Ha: p .06 p = .15 z= p − p0 p0 (1 − p0 ) n = .15 − .06 .06(.94) 80 = 3.38 p-value ≈ 0 We conclude that the return rate for the Houston store is different than the U.S. national return rate. 43. a. b. H0: p ≤ .10 Ha: p > .10 There are 13 “Yes” responses in the Eagle data set. p= c. z= 13 = .13 100 p − p0 p0 (1 − p0 ) n = .13 − .10 .10(1 − .10) 100 = 1.00 Upper tail p-value is the area to the right of the test statistic Using normal table with z = 1.00: p-value = 1 - .8413 = .1587 p-value > .05; do not reject H0. On the basis of the test results, Eagle should not go national. But, since p > .13, it may be worth expanding the sample size for a larger test. 44. a. H0: p .50 Ha: p > .50 9 - 16 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests b. Using Excel we find that 92 of the 150 physicians in the sample have been sued. So, p = z= 92 = .6133 150 p − p0 p0 (1 − p0 ) n = .6133 − .50 (.50)(.50) 150 = 2.78 p-value is the area in the upper tail at z = 2.78 Using normal table with z = 2.78: p-value = 1 – .9973 = .0027 c. 45. a. Since p-value = .0027 .01, we reject H0 and conclude that the proportion of physicians over the age of 55 who have been sued at least once is greater than .50. H0: p = .39 Ha: p .39 p = .385 z= p − p0 p0 (1 − p0 ) n = .385 − .39 .39(1 − .39) 300 = −.18 Because z < 0, p-value is 2 times the lower tail area at z = -.18 Using normal table with z = -.18: p-value = 2(.4286) = .8572 p − value .05; do not reject H0. We cannot conclude that bullish sentiment differs significantly from its long-term average of .39. b. H 0 : p .30 H 0 : p .30 p = .399 z= p − p0 p0 (1 − p0 ) n = .399 − .30 .30(1 − .30) 300 = 3.74 Because z > 0, p-value is the upper tail area at z = 3.74 Using normal table with z = 3.74: p-value ≈ 0 p − value = .01; reject H0. We conclude that bearish sentiment is significantly greater than its long-term average of .30. 9 - 17 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 c. It would be dangerous to generalize these results. The target population for this study is members of the American Association of Individual Investors. We might be willing to extend these results to the target population of all individual investors. But, should not extend the results to a target population of all investors. x = 46. n = 5 120 = .46 c = 10 - 1.645 (5 / 120 ) = 9.25 Reject H0 if x 9.25 a. When = 9, z= 9.25 − 9 5 / 120 = .55 P(Reject H0) = (1.0000 - .7088) = .2912 b. Type II error c. When = 8, z= 9.25 − 8 5 / 120 = 2.74 = (1.0000 - .9969) = .0031 47. Reject H0 if z -1.96 or if z 1.96 x = n = 10 200 = .71 9 - 18 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests c1 = 20 - 1.96 (10 / 200 ) = 18.61 c2 = 20 + 1.96 (10 / 200 ) = 21.39 a. = 18 z= 18.61 − 18 10 / 200 = .86 = 1.0000 - .8051 = .1949 b. = 22.5 z= 21.39 − 22.5 10 / 200 = −1.57 = 1.0000 - .9418 = .0582 c. = 21 z= 21.39 − 21 10 / 200 = .55 = .7088 48. a. H0: 15 Ha: > 15 Concluding 15 when this is not true. Fowle would not charge the premium rate even though the rate should be charged. 9 - 19 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 b. Reject H0 if z 2.33 z= x − 0 / n = x − 15 4 / 35 = 2.33 Solve for x = 16.58 Decision Rule: Accept H0 if x < 16.58 Reject H0 if x 16.58 For = 17, z= 16.58 − 17 = −.62 4 / 35 = .2676 c. For = 18, z= 16.58 − 18 = −2.10 4 / 35 = .0179 49. a. H0: 25 Ha: < 25 Reject H0 if z -2.05 z= x − 0 / n = x − 25 3 / 30 = −2.05 Solve for x = 23.88 Decision Rule: Accept H0 if x > 23.88 Reject H0 if x 23.88 b. For = 23, z= 23.88 − 23 3 / 30 = 1.61 = 1.0000 -.9463 = .0537 9 - 20 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests c. For = 24, z= 23.88 − 24 = −.22 3 / 30 = 1.0000 - .4129 = .5871 d. 50. a. b. The Type II error cannot be made in this case. Note that when = 25.5, H0 is true. The Type II error can only be made when H0 is false. Accepting H0 and concluding the mean average age was 28 years when it was not. Reject H0 if z -1.96 or if z 1.96 z= x − 0 / n = x − 28 6 / 100 Solving for x , we find at at z = -1.96, z = +1.96, x = 26.82 x = 29.18 Decision Rule: Accept H0 if 26.82 < x < 29.18 Reject H0 if x 26.82 or if x 29.18 At = 26, z= 26.82 − 26 6 / 100 = 1.37 = 1.0000 - .9147 = .0853 At = 27, z= 26.82 − 27 6 / 100 = −.30 = 1.0000 - .3821 = .6179 At = 29, z= 29.18 − 29 6 / 100 = .30 = .6179 9 - 21 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 At = 30, z= 29.18 − 30 6 / 100 = −1.37 = .0853 c. Power = 1 - at = 26, Power = 1 - .0853 = .9147 When = 26, there is a .9147 probability that the test will correctly reject the null hypothesis that = 28. 51. a. b. Accepting H0 and letting the process continue to run when actually over - filling or under - filling exists. Decision Rule: Reject H0 if z -1.96 or if z 1.96 indicates Accept H0 if 15.71 < x < 16.29 Reject H0 if x 15.71 or if x 16.29 For = 16.5 z= 16.29 − 16.5 .8 / 30 = −1.44 = .0749 c. Power = 1 - .0749 = .9251 9 - 22 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests d. The power curve shows the probability of rejecting H0 for various possible values of . In particular, it shows the probability of stopping and adjusting the machine under a variety of underfilling and overfilling situations. The general shape of the power curve for this case is 1.00 .75 .50 Power .25 .00 15.6 15.8 16.0 16.2 16.4 Possible Values of u c = 0 + z.01 52. = 15 + 2.33 n At = z = 16.32 − 17 4 / 50 4 50 = 16.32 = −1.20 = .1151 At = z = 16.32 − 18 4 / 50 = −2.97 = .0015 Increasing the sample size reduces the probability of making a Type II error. 53. a. b. Accept 100 when it is false. Critical value for test: c = 0 + z.05 n At = 120 z = = 100 + 1.645 119.51 − 120 75 / 40 75 40 = 119.51 = −.04 = .4840 c. At = 130 z = 119.51 − 130 75 / 40 = −.88 = .1894 d. Critical value for test: 9 - 23 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 c = 0 + z.05 n = 100 + 1.645 At = z = 113.79 − 120 75 / 80 75 80 = 113.79 = −.74 = .2296 At = z = 113.79 − 130 75 / 80 = −1.93 = .0268 Increasing the sample size from 40 to 80 reduces the probability of making a Type II error. ( z + z ) 2 2 54. n= 55. n= 56. At 0 = 3, ( 0 − a ) 2 ( z + z ) 2 2 ( 0 − a ) 2 = (1.645 + 1.28)2 (5)2 = 214 (10 − 9)2 = (1.96 + 1.645) 2 (10) 2 = 325 (20 − 22) 2 = .01. z.01 = 2.33 At a = 2.9375, = .10. z.10 = 1.28 = .18 n= 57. ( z + z ) 2 2 ( 0 − a ) 2 = (2.33 + 1.28) 2 (.18) 2 = 108.09 Use 109 (3 − 2.9375) 2 At 0 = 400, = .02. z.02 = 2.05 At a = 385, = .10. z.10 = 1.28 = 30 n= 58. ( z + z ) 2 2 ( 0 − a ) 2 = (2.05 + 1.28) 2 (30) 2 = 44.4 Use 45 (400 − 385) 2 At 0 = 28, = .05. Note however for this two - tailed test, z / 2 = z.025 = 1.96 At a = 29, = .15. z.15 = 1.04 =6 n= ( z / 2 + z ) 2 2 ( 0 − a ) 2 = (1.96 + 1.04) 2 (6) 2 = 324 (28 − 29) 2 9 - 24 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests 59. At 0 = 25, = .02. z.02 = 2.05 At a = 24, = .20. z.20 = .84 =3 n= 60. a. ( z + z ) 2 2 ( 0 − a ) 2 = (2.05 + .84) 2 (3) 2 = 75.2 Use 76 (25 − 24) 2 H0: = 16 Ha: 16 b. z= x − 0 / n = 16.32 − 16 .8 / 30 = 2.19 Because z > 0, p-value is two times the upper tail area Using normal table with z = 2.19: p-value = 2(.0143) = .0286 p-value .05; reject H0. Readjust production line. c. z= x − 0 / n = 15.82 − 16 .8 / 30 = −1.23 Because z < 0, p-value is two times the lower tail area Using normal table with z = -1.23: p-value = 2(.1093) = .2186 p-value > .05; do not reject H0. Continue the production line. d. Reject H0 if z -1.96 or z 1.96 For x = 16.32, z = 2.19; reject H0 For x = 15.82, z = -1.23; do not reject H0 Yes, same conclusion. 61. a. H0: = 900 Ha: 900 b. x z.025 n 935 1.96 180 200 9 - 25 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 935 25 c. d. (910 to 960) Reject H0 because = 900 is not in the interval. x − 0 935 − 900 z= = = 2.75 / n 180 / 200 Because z > 0, p-value is two times the upper tail area Using normal table with z = 2.75: p-value = 2(.0030) = .0060 62. a. b. H0: ≤ 4 Ha: > 4 z= x − 0 / n = 4.5 − 4 1.5 / 60 = 2.58 p-value is the upper tail area at z =2.58 Using normal table with z = 2.58: p-value = 1.0000 - .9951 = .0049 c. 63. p-value .01, reject H0. Conclude that the mean daily background television that children from low-income families are exposed to is greater than four hours. The hypothesis test that, if rejected, will allow us to conclude that the mean starting salary for business graduates in 2013 is significantly higher than the mean starting salary for business graduates in 2012 is as follows. H0: ≤ 53,900 Ha: > 53,900 t= x − 0 s/ n = 55,144 − 53,900 5200 / 100 = 2.392 Degrees of freedom = n – 1 = 100 – 1 = 99 p-value is upper-tail area Using t table: p-value is less than .01 Exact p-value corresponding to t = 2.392 is .0093 p-value .01; reject H0. The mean starting salary for business majors has increased in 2013. 64. H0: ≤ 30.8 Ha: > 30.8 t= x − 0 s/ n = 32.7234 − 30.8 12.1041/ 47 = 1.0894 Degrees of freedom = n – 1 = 46 Using t table, area in the upper tail is between .20 and .10 and p-value is between .10 and .20. 9 - 26 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests Exact p-value is .1408 Because p-value > α = .05, do not reject H0. There is no evidence to conclude that the mean age of recently wed British men exceeds the mean age for those wed in 2013. 65. a. b. H0: ≤ 520 Ha: > 520 Sample mean: 637.94 Sample standard deviation: 148.4694 t= x − 0 s/ n = 637.94 − 520 148.4694 / 50 = 5.62 Degrees of freedom = n – 1 = 49 p-value is the area in the upper tail Using t table: p-value is < .005 Exact p-value corresponding to t = 5.62 0 c. We can conclude that the mean weekly pay for all women is higher than that for women with only a high school degree. d. Using the critical value approach we would: Reject H0 if t t.05 = 1.677 Since t = 5.62 > 1.677, we reject H0. 66. H0: 125,000 Ha: > 125,000 t= x − 0 s/ n = 130,000 − 125,000 12,500 / 32 = 2.26 Degrees of freedom = 32 – 1 = 31 Upper tail p-value is the area to the right of the test statistic Using t table: p-value is between .01 and .025 Exact p-value corresponding to t = 2.26 is .0155 p-value .05; reject H0. Conclude that the mean cost is greater than $125,000 per lot. 9 - 27 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 H0: = 86 Ha: 86 67. x = 80 s = 20 t= x − 0 s/ n = 80 − 86 20 / 40 = −1.90 Degrees of freedom = 40 - 1 = 39 Because t < 0, p-value is two times the lower tail area Using t table: area in lower tail is between .025 and .05; therefore, p-value is between .05 and .10. Exact p-value corresponding to t = -1.90 is .0648 p-value > .05; do not reject H0. There is not a statistically significant difference between the population mean for the nearby county and the population mean of 86 days for Hamilton county. 68. a. H0: p .80 Ha: p .80 p= z= 455 = .84 542 p − p0 p0 (1 − p0 ) n = .84 − .80 .80(1 − .80) 542 = 2.33 p-value is the area in the upper tail Using normal table with z = 2.33: p-value = 1.0000 - .9901 = .0099 p-value .05; reject H0. We conclude that over 80% of airline travelers feel that use of the full body scanners will improve airline security. b. H0: p .75 Ha: p .75 p= z= 423 = .78 542 p − p0 p0 (1 − p0 ) n = .78 − .75 .75(1 − .75) 542 = 1.61 9 - 28 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests p-value is the area in the upper tail Using normal table with z = 1.61: p-value = 1.0000 - .9463 = .0537 p-value > .01; we cannot reject H0. Thus, we cannot conclude that over 75% of airline travelers approve of using full body scanners. Mandatory use of full body scanners is not recommended. Author’s note: The TSA is also considering making the use of full body scanners optional. Travelers would be given a choice of a full body scan or a pat down search. 69. a. H0: p = .6667 Ha: p .6667 b. p= c. z= 355 = .6502 546 p − p0 p0 (1 − p0 ) n = .6502 − .6667 .6667(1 − .6667) 546 = −.82 Because z < 0, p-value is two times the lower tail area Using normal table with z = -.82: p-value = 2(.2061) = .4122 p-value > .05; do not reject H0; Cannot conclude that the population proportion differs from 2/3. 70. a. H0: p .30 Ha: p > .30 b. p= c. z= 136 = .34 (34%) 400 p − p0 p0 (1 − p0 ) n = .34 − .30 .30(1 − .30) 400 = 1.75 p-value is the upper-tail area Using normal table with z = 1.75: p-value = 1.0000 - .9599 = .0401 d. 71. a. b. p-value .05; reject H0. Conclude that more than 30% of the millennials either live at home with their parents or are otherwise dependent on their parents. H0: p .079 Ha: p > .079 z= p − p0 = .108 − .079 = 2.15 p0 (1 − p0 ) (.079)(1 − .079) 400 n Upper tail p-value is the area to the right of the test statistic 9 - 29 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 Using normal table with z = 2.15: p-value = 1-.9842 = .0158 Since p-value = .0158 = .05 , reject H 0 . We can conclude that the unemployment rate for 18 to 34 year olds is significantly higher than the national unemployment rate of 7.9% for all adults. c. You can tell the campaign manager that the observed level of significance is .0158 and that this means the results would have been significant even with as small as .0158. Most reasonable people would reject the null hypotheses and conclude that the proportion of adults aged 18 to 34 who were unemployed was higher than the national unemployment rate for all adults. H0: p .90 Ha: p < .90 72. p= z= 49 = .8448 58 p − p0 p0 (1 − p0 ) n = .8448 − .90 .90(1 − .90) 58 = −1.40 Lower tail p-value is the area to the left of the test statistic Using normal table with z = -1.40: p-value =.0808 p-value > .05; do not reject H0. Claim of at least 90% cannot be rejected. 73. a. The point estimate of the proportion of people aged 65-69 working is p= 180 = .30 600 b. H0: p .27 Ha: p > .27 c. z= p − p0 p0 (1 − p0 ) n = .30 − .27 .27(1 − .27) 600 = 1.66 p-value is the upper tail area at z = 1.66 Using normal table with z = 1.66: p-value = 1 - .9515 = .0485 p-value .05; reject H0. We conclude that the proportion of people aged 65-69 has increased since 2007. 74. a. H0: 72 Ha: > 72 Reject H0 if z 1.645 9 - 30 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothesis Tests z= x − 0 / n = x − 72 20 / 30 = 1.645 Solve for x = 78 Decision Rule: Accept H0 if x < 78 Reject H0 if x 78 b. For = 80 z= 78 − 80 20 / 30 = −.55 = .2912 c. For = 75, z= 78 − 75 20 / 30 = .82 = .7939 d. For = 70, H0 is true. In this case the Type II error cannot be made. e. Power = 1 - 1.0 .8 P o w e r .6 .4 .2 72 75. 76 78 80 74 Possible Values of Ho False 82 84 H0: 15,000 Ha: < 15,000 At 0 = 15,000, = .02. z.02 = 2.05 At a = 14,000, = .05. z.10 = 1.645 9 - 31 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 9 n= ( z + z )2 2 ( 0 − a ) 2 = (2.05 + 1.645)2 (4, 000)2 = 218.5 (15, 000 − 14, 000) 2 Use 219 H0: = 120 Ha: 120 76. At 0 = 120, = .05. With a two - tailed test, z / 2 = z.025 = 1.96 At a = 117, = .02. n= b. ( z / 2 + z ) 2 2 ( 0 − a ) 2 = z.02 = 2.05 (1.96 + 2.05) 2 (5) 2 = 44.7 Use 45 (120 − 117) 2 Example calculation for = 118. Reject H0 if z -1.96 or if z 1.96 z= x − 0 / n = x − 120 5 / 45 Solve for x . At z = -1.96, x = 118.54 At z = +1.96, x = 121.46 Decision Rule: Accept H0 if 118.54 < x < 121.46 Reject H0 if x 118.54 or if x 121.46 For = 118, z= 118.54 − 118 5 / 45 = .72 = .2358 Other Results: If is 117 118 119 121 122 123 z 2.07 .72 -.62 +.62 +.72 -2.07 .0192 .2358 .7291 .7291 .2358 .0192 9 - 32 © 2017 Cengage Learning® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.