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# Assignment 2 Hypothesis Test

One-Sample Test

11-10-2014

MGT 202

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
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. 4

. 3

. 2

. 1

t r

Diagram(1)
b

i o

f (

.4821

.5000

. 0

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

= 0
\$1000