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# Chapter 9

Hypothesis Testing

Learning Objectives

1. Learn how to formulate and test hypotheses about a population mean and/or a population proportion.

## 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.

## null hypothesis two-tailed test

alternative hypothesis p-value
Type I error level of significance
Type II error critical value
one-tailed test power curve

9-1
Chapter 9

Solutions:

## b. We are not able to conclude that the managers claim is wrong.

c. The managers claim can be rejected. We can conclude that > 600.

2. a. H0: 14

## Ha: > 14 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.

## Ha: 32 Overfilling or underfilling exists

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.

4. a. H0: 220

Ha: < 220 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.

5. a. The Type I error is rejecting H0 when it is true. This error occurs if the researcher concludes that
young men in Germany spend more than 56.2 minutes per day watching prime-time TV when the
national average for Germans is not greater than 56.2 minutes.

b. The Type II error is accepting H0 when it is false. This error occurs if the researcher concludes that
the national average for German young men is 56.2 minutes when in fact it is greater than 56.2
minutes.

## 6. a. H0: 1 The label claim or assumption.

Ha: > 1

b. Claiming > 1 when it is not. This is the error of rejecting the products claim when the claim is
true.

9-2
Hypothesis Testing

c. Concluding 1 when it is not. In this case, we miss the fact that the product is not meeting its
label specification.

7. 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.

8. 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.

x 0 19.4 20
9. a. z= = = 2.12
/ n 2 / 50

b. Lower tail p-value is the area to the left of the test statistic

## c. p-value .05, reject H0

d. Reject H0 if z -1.645

## -2.12 -1.645, reject H0

x 0 26.4 25
10. a. z= = = 1.48
/ n 6 / 40

b. Upper tail p-value is the area to the right of the test statistic

## c. p-value > .01, do not reject H0

d. Reject H0 if z 2.33

## 1.48 < 2.33, do not reject H0

x 0 14.15 15
11. a. z= = = 2.00
/ n 3 / 50

Chapter 9

## -2.00 -1.96, reject H0

x 0 78.5 80
12. a. z= = = 1.25
/ n 12 / 100

Lower tail p-value is the area to the left of the test statistic

## p-value > .01, do not reject H0

x 0 77 80
b. z= = = 2.50
/ n 12 / 100

Lower tail p-value is the area to the left of the test statistic

## p-value .01, reject H0

x 0 75.5 80
c. z= = = 3.75
/ n 12 / 100

Lower tail p-value is the area to the left of the test statistic

## p-value .01, reject H0

x 0 81 80
d. z= = = .83
/ n 12 / 100

Lower tail p-value is the area to the left of the test statistic

x 0 52.5 50
a. z= = = 2.42
/ n 8 / 60

## 2.42 1.645, reject H0

9-4
Hypothesis Testing

x 0 51 50
b. z= = = .97
/ n 8 / 60

x 0 51.8 50
c. z= = = 1.74
/ n 8 / 60

## 1.74 1.645, reject H0

x 0 23 22
14. a. z= = = .87
/ n 10 / 75

x 0 25.1 22
b. z= = = 2.68
/ n 10 / 75

x 0 20 22
c. z= = = 1.73
/ n 10 / 75

## Ha: < 1056

x 0 910 1056
b. z= = = 1.83
/ n 1600 / 400

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.
Chapter 9

d. Reject H0 if z -1.645

## Ha: > 895

x 0 915 895
b. z= = = 1.19
/ n 225 / 180

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 1.19: p-value = 1.0000 - .8830 = .1170

c. Do not reject H0. We cannot conclude the rental rates have increased.

d. Recommend withholding judgment and collecting more data on apartment rental rates before
drawing a final conclusion.

Ha: 125,500

b. z= = = 1.58
/ n 30, 000 / 40

## Using normal table with z = -1.58: p-value = 2(.0571) = .1142

c. p-value > .05, do not reject H0. We cannot conclude that the year-end bonuses paid by Jones & Ryan

Ha: 4.1

x 0 3.4 4.1
b. z= = = 2.21
/ n 2 / 40

## Using normal table with z = -2.21: p-value = 2(.0136) = .0272

9-6
Hypothesis Testing

## c. p-value = .0272 < .05

Reject H0 and conclude that the return for Mid-Cap Growth Funds differs significantly from that for
U.S. Diversified funds.

## Ha: > 14.32

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 2.15: p-value = 1.0000 - .9842 = .0158

p-value .05, reject H0. Conclude that there has been an increase in the mean hourly wage of
production workers.

## Ha: < 32.79

x
b. z= 0 = 30.63 32.79 = 2.73
n 5.6 50

## Using normal table with z = -2.73: p-value = .0032.

d. p-value .01; reject H 0 . Conclude that the mean monthly internet bill is less in the southern state.

21. a. H0: 15

Ha: > 15

x 17 15
b. z= = = 2.96
/ n 4 / 35

c. Upper tail p-value is the area to the right of the test statistic

22. a. H0: = 8

Ha: 8

## Using normal table with z = 1.37: p-value = 2(1 - .9147) = .1706

c. Do not reject H0. Cannot conclude that the population mean waiting time differs from 8 minutes.
Chapter 9

d. x z.025 ( / n )

## Yes; = 8 is in the interval. Do not reject H0.

x 0 14 12
23. a. t= = = 2.31
s/ n 4.32 / 25

b. Degrees of freedom = n 1 = 24

Upper tail p-value is the area to the right of the test statistic

## d. With df = 24, t.05 = 1.711

Reject H0 if t 1.711

## 2.31 > 1.711, reject H0.

x 0 17 18
24. a. t= = = 1.54
s/ n 4.5 / 48

b. 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.

## t = -1.54; do not reject H0

x 0 44 45
25. a. t= = = 1.15
s/ n 5.2 / 36

Degrees of freedom = n 1 = 35

Lower tail p-value is the area to the left of the test statistic

9-8
Hypothesis Testing

## p-value > .01, do not reject H0

x 0 43 45
b. t= = = 2.61
s/ n 4.6 / 36

Lower tail p-value is the area to the left of the test statistic

## p-value .01, reject H0

x 0 46 45
c. t= = = 1.20
s/ n 5 / 36

Lower tail p-value is the area to the left of the test statistic

## p-value > .01, do not reject H0

x 0 103 100
26. a. t= = = 2.10
s/ n 11.5 / 65

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.

x 0 96.5 100
b. t= = = 2.57
s/ n 11/ 65

## 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.

Chapter 9

x 0 102 100
c. t= = = 1.54
s/ n 10.5 / 65

## 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.

## Ha: < 238

x 0 231 238
b. t= = = .88
s/ n 80 / 100

Degrees of freedom = n 1 = 99

Lower tail p-value is the area to the left of the test statistic

## Exact p-value corresponding to t = -.88 is .1905

c. p-value > .05; do not reject H0. Cannot conclude mean weekly benefit in Virginia is less than the
national mean.

d. df = 99 t.05 = -1.66

Reject H0 if t -1.66

## Ha: > 3530

x 0 3740 3530
b. t= = = 2.49
s/ n 810 / 92

Degrees of freedom = n 1 = 91

Upper tail p-value is the area to the right of the test statistic

## Exact p-value corresponding to t = 2.49 is .0072

c. p-value .01; reject H0. The mean attendance per game has increased. Anticipate a new all-time high
season attendance during the 2002 season.

9 - 10
Hypothesis Testing

## 29. a. H0: = 5600

Ha: 5600

x 0 5835 5600
b. t= = = 2.26
s/ n 520 / 25

Degrees of freedom = n 1 = 24

## Because t < 0, p-value is two times the upper 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 = 2.26 is .0332

c. p-value .05; reject H0. The mean diamond price in New York City differs.

d. df = 24 t.025 = 2.064

Ha: 600

x 0 612 600
b. t= = = 1.17
s/ n 65 / 40

df = n - 1 = 39

## 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 = 1.17 is .2491

c. With = .10 or less, we cannot reject H0. We are unable to conclude there has been a change in the
mean CNN viewing audience.

d. The sample mean of 612 thousand viewers is encouraging but not conclusive for the sample of 40
days. Recommend additional viewer audience data. A larger sample should help clarify the situation
for CNN.

## Ha: > 47.50

x 0 51 47.50
t= = = 2.33
s/ n 12 / 64

Degrees of freedom = n - 1 = 63
Chapter 9

Upper tail p-value is the area to the right of the test statistic

## Exact p-value corresponding to t = 2.33 is .0110

Reject H0; Atlanta customers are paying a higher mean water bill.

## 32. a. H0: = 10,192

Ha: 10,192

x 0 9750 10,192
b. t= = = 2.23
s/ n 1400 / 50

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. p-value .05; reject H0. The population mean price at this dealership differs from the national mean
price \$10,192.

## b. 24.1 21.6 = 2.5 gallons

x 0 24.1 21.6
c. t= = = 2.08
s/ n 4.8 / 16

Degrees of freedom = n 1 = 15

Upper tail p-value is the area to the right of the test statistic

## Exact p-value corresponding to t = 2.08 is .0275

d. p-value .05; reject H0. The population mean consumption of milk in Webster City is greater than
the National mean.

34. a. H0: = 2

Ha: 2

xi 22
b. x= = = 2.2
n 10

9 - 12
Hypothesis Testing

2
( xi x )
c. s= = .516
n 1

x 0 2.2 2
d. t= = = 1.22
s/ n .516 / 10

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.

p p0 .175 .20
35. a. z= = = 1.25
p0 (1 p0 ) .20(1 .20)
n 400

d. z.025 = 1.96

## z = 1.25; do not reject H0

p p0 .68 .75
36. a. z= = = 2.80
p0 (1 p0 ) .75(1 .75)
n 300

Lower tail p-value is the area to the left of the test statistic

## p-value .05; Reject H0

.72 .75
b. z= = 1.20
.75(1 .75)
300

Lower tail p-value is the area to the left of the test statistic

## p-value > .05; Do not reject H0

Chapter 9

.70 .75
c. z= = 2.00
.75(1 .75)
300

Lower tail p-value is the area to the left of the test statistic

## p-value .05; Reject H0

.77 .75
d. z= = .80
.75(1 .75)
300

Lower tail p-value is the area to the left of the test statistic

## Ha: p > .125

52
b. p= = .13
400

p p0 .13 .125
z= = = .30
p0 (1 p0 ) .125(1 .125)
n 400

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = .30: p-value = 1.0000 - .6179 = .3821

c. p-value > .05; do not reject H0. We cannot conclude that there has been an increase in union
membership.

## 38. a. H0: p = .64

Ha: p .64

52
b. p= = .52
100

p p0 .52 .64
z= = = 2.50
p0 (1 p0 ) .64(1 .64)
n 100

9 - 14
Hypothesis Testing

## 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. H0: p = .70

Ha: p .70

252
b. Wisconsin p = = .72
350

p p0 .72 .70
z= = = .82
p0 (1 p0 ) .70(1 .70)
n 350

## Cannot reject H0.

189
California p = = .63
300

.63 .70
z= = 2.65
.70(1 .70)
300

## Using normal table with z = -2.65: p-value = 2(.0040) = .0080

Reject H0. California has a different (lower) percentage of adults who do not exercise regularly.

414
40. a. p= = .2702 (27%)
1532

b. H0: p .22

## Ha: p > .22

p p0 .2702 .22
z= = = 4.75
p0 (1 p0 ) .22(1 .22)
n 1532
Chapter 9

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 4.75: p-value 0

c. These studies help companies and advertising firms evaluate the impact and benefit of commercials.

## Ha: p < .70

p p0 .67 .70
b. z= = = 1.13
p0 (1 p0 ) .70(1 .70)
n 300

Lower tail p-value is the area to the left of the test statistic

## Using normal table with z = -1.13: p-value =.1292

c. p-value > .05; do not reject H0. The executive's claim cannot be rejected.

## Ha: p > .24

93
p= = .31
300

p p0 .31 .24
z= = = 2.84
p0 (1 p0 ) .24(1 .24)
n 300

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 2.84: p-value = 1 .9977 = .0023

p-value .05; reject H0. In 2003, an estimated 31% of people who moved selected to be convenient
to work as their primary reason. This is an increase compared to 1990.

## b. There are 13 Yes responses in the Eagle data set.

13
p= = .13
100
p p0 .13 .10
c. z= = = 1.00
p0 (1 p0 ) .10(1 .10)
n 100

9 - 16
Hypothesis Testing

Upper tail p-value is the area to the right of the test statistic

## Ha: p > .51

232
b. p= = .58
400

p p0 .58 .51
z= = = 2.80
p0 (1 p0 ) (.51)(.49)
n 400

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 2.80: p-value = 1 .9974 = .0026

c. Since p-value = .0026 .01, we reject H0 and conclude that people working the night shift get
drowsy while driving more often than the average for the entire population.

## 45. a. H0: p = .30

Ha: p .30

24
b. p= = .48
50

p p0 .48 .30
c. z= = = 2.78
p0 (1 p0 ) .30(1 .30)
n 50

## p-value .01; reject H0.

We would conclude that the proportion of stocks going up on the NYSE is not 30%. This would
suggest not using the proportion of DJIA stocks going up on a daily basis as a predictor of the
proportion of NYSE stocks going up on that day.
Chapter 9

5
46. x = = = .46
n 120

Ha: < 10
H0: 10

.05

x
10

## c = 10 - 1.645 (5 / 120 ) = 9.25

Reject H0 if x 9.25

a. When = 9,

9.25 9
z= = .55
5 / 120

b. Type II error

c. When = 8,

9.25 8
z= = 2.74
5 / 120

## 47. Reject H0 if z -1.96 or if z 1.96

10
x = = = .71
n 200

9 - 18
Hypothesis Testing

Ha : 20 H0: = 20 Ha: 20

.025 .025

x x
c1 20 c2

a. = 18

18.61 18
z= = .86
10 / 200

b. = 22.5

21.39 22.5
z= = 1.57
10 / 200

## = 1.0000 - .9418 = .0582

c. = 21

21.39 21
z= = .55
10 / 200

= .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.
Chapter 9

b. Reject H0 if z 2.33

x 0 x 15
z= = = 2.33
/ n 4 / 35

Decision Rule:

## Accept H0 if x < 16.58

Reject H0 if x 16.58

For = 17,

16.58 17
z= = .62
4 / 35

= .2676

c. For = 18,

16.58 18
z= = 2.10
4 / 35

= .0179

49. a. H0: 25

Ha: < 25

Reject H0 if z -2.05

x 0 x 25
z= = = 2.05
/ n 3 / 30

Decision Rule:

## Accept H0 if x > 23.88

Reject H0 if x 23.88

b. For = 23,

23.88 23
z= = 1.61
3 / 30

## = 1.0000 -.9463 = .0537

9 - 20
Hypothesis Testing

c. For = 24,

23.88 24
z= = .22
3 / 30

## = 1.0000 - .4129 = .5871

d. 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.

50. a. Accepting H0 and concluding the mean average age was 28 years when it was not.

x 0 x 28
z= =
/ n 6 / 100

## Solving for x , we find

at z = -1.96, x = 26.82
at z = +1.96, x = 29.18

Decision Rule:

At = 26,

26.82 26
z= = 1.37
6 / 100

At = 27,

26.82 27
z= = .30
6 / 100

At = 29,

29.18 29
z= = .30
6 / 100

= .6179
Chapter 9

At = 30,

29.18 30
z= = 1.37
6 / 100

= .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. Accepting H0 and letting the process continue to run when actually over - filling or under - filling
exists.

For = 16.5

16.29 16.5
z= = 1.44
.8 / 30

= .0749

x
16.29 16.5

## c. Power = 1 - .0749 = .9251

9 - 22
Hypothesis Testing

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

Power .50

.25

.00
15.6 15.8 16.0 16.2 16.4

Possible Values of u

4
52. c = 0 + z.01 = 15 + 2.33 = 16.32
n 50

16.32 17
At = 17 z = = 1.20
4 / 50

= .1151

16.32 18
At = 18 z = = 2.97
4 / 50
= .0015

Increasing the sample size reduces the probability of making a Type II error.

## b. Critical value for test:

75
c = 0 + z.05 = 100 + 1.645 = 119.51
n 40

119.51 120
At = 120 z= = .04
75 / 40

= .4840

119.51 130
c. At = 130 z = = .88
75 / 40

= .1894
Chapter 9

## d. Critical value for test:

75
c = 0 + z.05 = 100 + 1.645 = 113.79
n 80
113.79 120
At = 120 z = = .74
75 / 80

= .2296

113.79 130
At = 130 z = = 1.93
75 / 80

= .0268

Increasing the sample size from 40 to 80 reduces the probability of making a Type II error.

54. n= 2
= = 214
(0 a ) (10 9) 2

55. n= 2
= = 325
(0 a ) (20 22) 2

= .18

## ( z + z ) 2 2 (2.33 + 1.28) 2 (.18) 2

n= 2
= = 108.09 Use 109
(0 a ) (3 2.9375) 2

= 30

## ( z + z ) 2 2 (2.05 + 1.28) 2 (30) 2

n= 2
= = 44.4 Use 45
(0 a ) (400 385) 2

58. At 0 = 28, = .05. Note however for this two - tailed test, z / 2 = z.025 = 1.96

=6

## ( z / 2 + z ) 2 2 (1.96 + 1.04) 2 (6) 2

n= = = 324
(0 a )2 (28 29) 2

9 - 24
Hypothesis Testing

=3

n= 2
= = 75.2 Use 76
(0 a ) (25 24) 2

60. a. H0: = 16

Ha: 16

x 0 16.32 16
b. z= = = 2.19
/ n .8 / 30

x 0 15.82 16
c. z= = = 1.23
/ n .8 / 30

## Using normal table with z = -1.23: p-value = 2(.1093) = .2186

p-value > .05; do not reject H0. Continue the production line.

Ha: 900

b. x z.025
n

180
935 1.96
200

Chapter 9

x 0 935 900
d. z= = = 2.75
/ n 180 / 200

## 62. a. H0: 119,155

Ha: > 119,155

x 0 126,100 119,155
b. z= = = 2.60
/ n 20, 700 / 60

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 2.60: p-value = 1.0000 - .9953 = .0047

c. p-value .01, reject H0. We can conclude that the mean annual household income for theater goers
in the San Francisco Bay area is higher than the mean for all Playbill readers.

63. The hypothesis test that will allow us to conclude that the consensus estimate has increased is given
below.

H0: 250,000

## x 0 266, 000 250, 000

t= = = 2.981
s/ n 24, 000 / 20

Degrees of freedom = n 1 = 19

Upper tail p-value is the area to the right of the test statistic

## 64. H0: = 6000

Ha: 6000

x 0 5812 6000
t= = = .93
s/ n 1140 / 32

Degrees of freedom = n 1 = 31

9 - 26
Hypothesis Testing

## Because t < 0, p-value is two times the lower tail area

Using t table: area in lower tail is between .10 and .20; therefore, p-value is between .20 and .40.

## Exact p-value corresponding to t = -.93 is .3596

Do not reject H0. There is no evidence to conclude that the mean number of freshman applications
has changed.

## Ha: < 6883

x 0 6130 6883
b. t= = = 1.89
s/ n 2518 / 40

Degrees of freedom = n 1 = 39

Lower tail p-value is the area to the left of the test statistic

## Exact p-value corresponding to t = -1.89 is .0331

c. We should conclude that Medicare spending per enrollee in Indianapolis is less than the national
average.

## x 0 130, 000 125, 000

t= = = 2.26
s/ n 12,500 / 32

Degrees of freedom = 32 1 = 31

Upper tail p-value is the area to the right of the test statistic

## 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.
Chapter 9

## 67. H0: = 2.357

Ha: 2.357

xi
x= = 2.3496
n

2
( xi x )
s= = .0444
n 1

x 0 2.3496 2.3570
t= = = 1.18
s/ n .0444 / 50

Degrees of freedom = 50 - 1 = 49

## Because t < 0, p-value is two times the lower tail area

Using t table: area in lower tail is between .10 and .20; therefore, p-value is between .20 and .40.

## p-value > .05; do not reject H0.

There is not a statistically significant difference between the National mean price per gallon and the
mean price per gallon in the Lower Atlantic states.

## Ha: p > .50

64
b. p= = .64
100

p p0 .64 .50
c. z= = = 2.80
p0 (1 p0 ) .50(1 .50)
n 100

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 2.80: p-value = 1.0000 - .9974 = .0026

p-value .01; reject H0. College graduates have a greater stop-smoking success rate.

## 69. a. H0: p = .6667

Ha: p .6667

355
b. p= = .6502
546

9 - 28
Hypothesis Testing

p p0 .6502 .6667
c. z= = = .82
p0 (1 p0 ) .6667(1 .6667)
n 546

## 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.

## Ha: p > .80

252
b. p= = .84 (84%)
300

p p0 .84 .80
c. z= = = 1.73
p0 (1 p0 ) .80(1 .80)
n 300

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 1.73: p-value = 1.0000 - .9582 = .0418

d. p-value .05; reject H0. Conclude that more than 80% of the customers are satisfied with the service
provided by the home agents. Regional Airways should consider implementing the home agent
system.

503
71. a. p= = .553
910

b. H0: p .50

## Ha: p > .50

p p0 .553 .500
c. z= = = 3.19
p0 (1 p0 ) (.5)(.5)
n 910

Upper tail p-value is the area to the right of the test statistic

## Using normal table with z = 3.19: p-value 0

You can tell the manager that the observed level of significance is very close to zero and that this
means the results are highly significant. Any reasonable person would reject the null hypotheses and
conclude that the proportion of adults who are optimistic about the national outlook is greater
than .50
Chapter 9

## Ha: p < .90

49
p= = .8448
58

p p0 .8448 .90
z= = = 1.40
p0 (1 p0 ) .90(1 .90)
n 58

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.

## Ha: p < .24

81
b. p= = .2025
400

p p0 .2025 .24
c. z= = = 1.76
p0 (1 p0 ) .24(1 .24)
n 400

Lower tail p-value is the area to the left of the test statistic

## p-value .05; reject H0.

The proportion of workers not required to contribute to their company sponsored health care plan has
declined. There seems to be a trend toward companies requiring employees to share the cost of
health care benefits.

74. a. H0: 72

Ha: > 72

Reject H0 if z 1.645

x 0 x 72
z= = = 1.645
/ n 20 / 30

Solve for x = 78

Decision Rule:

Accept H0 if x < 78

9 - 30
Hypothesis Testing

Reject H0 if x 78

b. For = 80

78 80
z= = .55
20 / 30

= .2912

c. For = 75,

78 75
z= = .82
20 / 30

= .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
.6
w
e
r .4

.2

72 74 76 78 80 82 84
Possible Values of
Ho False

## ( z + z )2 2 (2.05 + 1.645) 2 (4, 000) 2

n= 2
= = 218.5 Use 219
(0 a ) (15, 000 14, 000) 2

Ha: 120
Chapter 9

## ( z / 2 + z )2 2 (1.96 + 2.05) 2 (5) 2

n= 2
= = 44.7 Use 45
(0 a ) (120 117) 2

x 0 x 120
z= =
/ n 5 / 45

## Solve for x . At z = -1.96, x = 118.54

At z = +1.96, x = 121.46

Decision Rule:

For = 118,

118.54 118
z= = .72
5 / 45

= .2358

Other Results:

If is z
117 2.07 .0192
118 .72 .2358
119 -.62 .7291
121 +.62 .7291
122 +.72 .2358
123 -2.07 .0192

9 - 32