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Inferential Statistics I (Statistics for Managers: Global Edition using Microsoft

Excel 7
th
Edition)

- 9.1 until 9.8 page 337
- 9.9 page 337
- 9.15 page 337
- 9.34 until 9.43 page 348

Refer to Online Topic: Chapter 9.6 (page 6) – Type II Error
- 9.78
- 9.79
- 9.81
- 9.83


9.1 Decision rule: Reject H
0
if Z
STAT
< – 1.96 or Z
STAT
> + 1.96.
Decision: Since Z
STAT
= ÷ 0.76 is in between the two critical values, do not reject H
0
.

9.2 Decision rule: Reject H
0
if Z
STAT
< – 1.96 or Z
STAT
> + 1.96.
Decision: Since Z
STAT
= + 2.21 is greater than the upper critical value of + 1.96, reject H
0
.

9.3 Decision rule: Reject H
0
if Z
STAT
< – 1.645 or Z
STAT
> + 1.645.

9.4 Decision rule: Reject H
0
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 H
0
.

9.6 p-value = P(Z > 2) = 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 = P(Z < ÷1.38) = 2(1 ÷ .9162) = 0.1676

9.9 o is the probability of incorrectly convicting the defendant when he is innocent. | is the
probability of incorrectly failing to convict the defendant when he is guilty.

9.15 (a) H
0
: µ = 1.00 The mean amount of paint per can is one gallon.
H
1
: µ =1.00 The mean amount of paint per can differs from one gallon.
Decision rule: Reject H
0
if Z < – 2.58 or Z > + 2.58.
Test statistic: Z =
X – µ
o
n
=
0.995 – 1.00
0.02
50
= – 1.77
Decision: Since Z = – 1.77 is between the critical bounds of ± 2.58, do not reject H
0
.
There is not enough evidence to conclude that the mean amount of paint per one-gallon
can differs from one gallon.
(b) p-value = 2(0.0384) = 0.0768
Interpretation: The probability of getting a sample of 50 cans that will yield a mean
amount that is farther away from the hypothesized population mean than this sample is
0.0768.
(c) X ± Z·
o
n
= 0.995±2.58·
0.02
50
0.9877s µ s1.0023
You are 95% confident that population mean amount of paint contained in 1-gallon cans
purchased from a nationally known manufacturer is somewhere between 0.9877 and
1.0023 gallon.
(d) Since the 99% confidence interval does contain the hypothesized value of 1, you will not
reject H
0
. The conclusions are the same.

9.34 p-value = 1 ÷ 0.9772 = 0.0228
9.35 Since the p-value = 0.0228 is less than o = 0.05, reject H
0
.
9.36 p-value = 0.0838
9.37 Since the p-value = 0.0838 is greater than o = 0.01, do not reject H
0
.
9.38 p-value = ( ) 38 . 1 < Z P = 0.9162
9.39 Since the p-value = 0.9162 > 0.01, do not reject the null hypothesis.
9.40 t = 2.7638
9.41 Since t
STAT
= 2.39 < 2.7638, do not reject H
0
.
9.42 t = ÷2.5280
9.43 Since t
STAT
= ÷1.15 > ÷2.5280, do not reject H
0
.
9.78
0
: 7 H µ > ,
1
: 7 H µ < , 0.05 o = , 16 n = , 0.2 o =
Lower critical value: 1.6449
L
Z = ÷ ,
.2
7 1.6449 6.9178
16
L L
X Z
n
o
µ
| | | |
= + = ÷ =
| |
\ . \ .

(a)
1
6.9178 6.9
0.3551
.2
16
L
X
Z
n
µ
o
÷ ÷
= = =
Power =
( ) ( ) 1 0.3551 0.6388
L
P X X P Z | ÷ = < = < =
1 0.6388 0.3612 | = ÷ =
(b)
1
6.9178 6.8
2.3551
.2
16
L
X
Z
n
µ
o
÷ ÷
= = =
Power =
( ) ( ) 1 2.3551 0.9907
L
P X X P Z | ÷ = < = < =
1 0.9907 0.0093 | = ÷ =

9.79
0
: 7 H µ > ,
1
: 7 H µ < , 0.01 o = , 16 n = , 0.2 o =
Lower critical value: 2.3263
L
Z = ÷ ,
.2
7 2.3263 6.8837
16
L L
X Z
n
o
µ
| | | |
= + = ÷ =
| |
\ . \ .

(a)
1
6.8837 6.9
0.3263
.2
16
L
X
Z
n
µ
o
÷ ÷
= = = ÷
Power =
( ) ( ) 1 0.3263 0.3721
L
P X X P Z | ÷ = < = < ÷ =
1 0.3721 0.6279 | = ÷ =
(b)
1
6.8837 6.8
1.6737
.2
16
L
X
Z
n
µ
o
÷ ÷
= = =
Power =
( ) ( ) 1 1.6737 0.9529
L
P X X P Z | ÷ = < = < =
1 0.9529 0.0471 | = ÷ =
(c) Holding everything else constant, the greater the distance between the true mean and
the hypothesized mean, the higher the power of the test will be and the lower the
probability of committing a Type II error will be. Holding everything else constant, the
smaller the level of significance, the lower the power of the test will be and the higher
the probability of committing a Type II error will be.

9.81
0
: 25, 000 H µ > ,
1
: 25, 000 H µ < , 0.05 o = , 100 n = , 3500 o =
Lower critical value: 1.6449
L
Z = ÷ ,
3,500
25, 000 1.6449 24,424.3013
100
L L
X Z
n
o
µ
| | | |
= + = ÷ =
| |
\ . \ .

(a)
1
24,424.3012 24, 000
1.2123
3500
100
L
X
Z
n
µ
o
÷ ÷
= = =
Power =
( ) ( ) 1 1.2123 0.8873
L
P X X P Z | ÷ = < = < =
1 0.8873 0.1127 | = ÷ =
(b)
1
24,424.3012 24, 900
1.3591
3, 500
100
L
X
Z
n
µ
o
÷ ÷
= = = ÷
Power =
( ) ( ) 1 1.3591 0.0871
L
P X X P Z | ÷ = < = < ÷ =
1 0.0871 0.9129 | = ÷ =

9.83
0
: 25, 000 H µ > ,
1
: 25, 000 H µ < , 0.05 o = , 25 n = , 3500 o =
Lower critical value: 1.6449
L
Z = ÷ ,

3,500
25, 000 1.6449 23,848.6026
25
L L
X Z
n
o
µ
| | | |
= + = ÷ =
| |
\ . \ .

(a)
1
23,848.6026 24, 000
0.2163
3, 500
25
L
X
Z
n
µ
o
÷ ÷
= = = ÷
power =
( ) ( ) 1 0.2163 0.4144
L
P X X P Z | ÷ = < = < ÷ =
1 0.4144 0.5856 | = ÷ =
(b)
1
23,848.6026 24, 900
1.5020
3, 500
25
L
X
Z
n
µ
o
÷ ÷
= = = ÷
power =
( ) ( ) 1 1.5020 0.0665
L
P X X P Z | ÷ = < = < ÷ =
1 0.0665 0.9335 | = ÷ =
(c) Holding everything else constant, the larger the sample size, the higher the power of the
test will be and the lower the probability of committing a Type II error will be.