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Assignment 2 Hypothesis Test

One-Sample Test

11-10-2014

MGT 202

Answer the questions:


a)
b)
c)
d)
e)

Is this a one- or-two tailed test?


What is the decision rule?
What is the value of test statistic?
What is your decision regarding HN?
What is the p-value? Interpret it.

1. The following information is available.


H N : =50
H A : 50
A sample size is 36 provided a sample mean is 0f 49. The population standard deviation =5.
Use the 0.05 significance level.
Population Mean:
Significance Level:
Population standard deviation:
Sample Size:

is known
0.05
= 5
n= 36

Sample Mean:

= 49

a. two tailed test .


b. Two tailed Z-test with =0.05
Z/2 = 1.96
Rejected H0 if z<-1.96 or z > 1.96 otherwise don't reject .
c. Test statistic
Z=
=

Z=

= 0.833
= -1.2

d. Decision and result:Z= -1.2 > -1.96


Don't reject H0
No, we can't say that is different from 50

2. The following information is available.


H N : 10
H A : 10
The sample mean is 12 for a sample of 36.The population standard deviation is 3. The
population standard deviation =5. Use the 0.05 significance level. Use the 0.02 significance
level.
Population Mean:
is known
Significance Level:
0.02
Population standard deviation:
= 3
Sample Size:
n= 36
Sample Mean:
= 12

a. one tailed test .


b. one tailed Z-test with =0.02
Z/2 =
0.5 0.02 = 0.48 look in table = 2.06
Rejected H0 if z >2.06 otherwise don't reject .

0.5 0.02 = 0.48

c. Test statistic
Z=
=

Z=

= 0.5
=4

d. Decision and result:Z= 4 > 2.06


reject H0
yes, the mean is more than 10
3. The following information is available.
H N : 220
H A : 220

R.R = 4

Steps of Hypothesis Testing: for ONE Tailed Hypothesis


a)
b)
c)
d)
e)

Calculate z-value

/ n

Search for z-value from z-distribution table


Find value using: 0.5000- z-distribution value.
Compare value with C.V.( = 0.05 or 0.02 or 0.01.)
Using decision Rule ( conclusion) as:
If value -value. Reject H N and
If value

Accept H A .
-value. Accept H N and
Reject H A .

4. Consider the following hypothesis test:


H N : 25
H A : 25
A sample of 100 is used and the population standard deviation is assumed to be 12. Use =
0.05. Provide the value of the test statistic z and your conclusion for each of the following
sample results:

a) =23.5
Population Mean:
Significance Level:
Population standard deviation:
Sample Size:
Sample Mean:

one tailed test .


one tailed Z-test with =0.02

is known
0.05
= 12
n= 100
= 23.5

Z/2 =
0.5 0.05 = 0.45 look in table = 0.2088
Rejected H0 if z > 0.2088 otherwise don't reject .
e. Test statistic
Z=
=

Z=

= 1.2
= -1.25

f. Decision and result:Z= -1.21 < 2.088


Dont reject H0
no, the mean is less than 50

Steps of Hypothesis Testing: for ONE Tailed Hypothesis


a) Calculate z-value

/ n

b) Search for z-value from z-distribution table


c) Find Pr ob.ability value using: 0.5000- z-distribution value.
d) Compare Pr ob.ability value with C.V.( = 0.05 or 0.02 or
0.01.)
e) Using decision Rule ( conclusion) as:
If Pr ob.ability value -value(0.05). Reject H N and
If Pr ob.ability value -value.

Accept H A .
Accept H N and
Reject H A .

Q: MULTIPLE CHOICE QUESTIONS


In hypothesis testing, if the null hypothesis is rejected,
a. no conclusions can be drawn from the test

b. the alternative hypothesis is true*


c. the data must have been accumulated incorrectly
d. the sample size has been too small
3.

The level of significance is the


a. maximum allowable probability of Type II error

b. maximum allowable probability of Type I error*


c. same as the confidence coefficient
d. same as the p-value
A Type II error is committed when

a. a true alternative hypothesis is mistakenly rejected*


b. a true null hypothesis is mistakenly rejected
c. the sample size has been too small
d. not enough information has been available
6.

The error of rejecting a true null hypothesis is

a. a Type I error*
b. a Type II error
c. is the same as
d. committed when not enough information is available
7.

The level of significance in hypothesis testing is the probability of


a. accepting a true null hypothesis
b. accepting a false null hypothesis

c. rejecting a true null hypothesis *


d. None of these alternatives is correct.
8.

The level of significance


a. can be any positive value
b. can be any value

c. is (1 - confidence level) *
d. can be any value bet ween -1.96 to 1.96

8. From the information summarized in the following diagram:


6-14
r

. 4

. 3

. 2

. 1

t r

Diagram(1)
b

i o

f (

.4821

.5000

. 0

- 5

-2.10
$790
McGraw-Hill/Irwin
McGraw-Hill/ Irwin

= 0
$1000

Copyright 2003by The McGraw-Hill Companies, Inc.,.All rights reserved

The McGraw-Hill Companies, Inc., 2003 All Rights Reserved.

The -Value in the shadowed area is:


a) 0.0179
b) 0.0117
c) 0.0021

d) 0.9821 *

Scale of Z
Scale of $ (X)