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Sev R.

Arriola
B.S. Accountancy
Chapter 10
Exercises 10.12 – 10.22
10.12
(a) A false positive would be a Type I error.

(b) Type I error would be thinking that the cancer is present when the person does not

have cancer.

Consequences of making Type I error would be that the person would be undergoing
the treatment even though she does not have cancer.

(c) Type II error would be thinking that the cancer is not present when the person is
having cancer.

Consequences of making Type II error could lead to the death of the patient.

(d) Relationship between the probability of Type I and Type II error that is being
described by the statement is that as the probability of Type I error decreases the
probability of Type II increases.

10.14

The given data is related to the reliability of DNA paternity testing.

(a)

From the given hypotheses, Type I and Type II error can be described as below-

Type I error is – Rejecting the null hypothesis when actually it is true.

Here, Type I error is- The DNA test indicates that a particular man is not the father when
actually he is the father.

Type II error is – Accepting the null hypothesis when actually it is false.

Here, Type II error is- The DNA test indicates that a particular man is the father when
actually he is not the father.
(b)

Type I error is- The DNA test indicates that a particular man is not the father when
actually he is the father.

It is given that in 99.9% cases, correct decision is taken if the man is the father. So, the
probability of taking a wrong decision if the man is the father is given by-

Therefore, the probability of type I error is equal to 0.001.

Here, Type II error is- The DNA test indicates that a particular man is father when
actually he is not the father.

It is given that in 100% cases, correct decision is taken if the man is not the father. So,
the probability of taking a wrong decision if the man is not the father is equal to 0.

Therefore, the probability of type II error is equal to 0.

(c)

Suppose the decision is based on DNA testing in which the mother is not tested. In this
case, there is 0.8% chance of Type II error. It means that the probability of Type II error
is equal to 0.008.

Therefore,

10.16

(a)

A Type II error would be obtaining convincing evidence that less than 90% of the TV
sets need no repair when in fact (at least) 90% need no repair.

A Type II error would be not obtaining convincing evidence that less than 90% of the TV
sets need no repair when in fact less than 90% need no repair.

A Type I error would be obtaining convincing evidence that less than 90% of the TV sets
need no repair when in fact (at least) 90% need no repair.
A Type I error would be not obtaining convincing evidence that less than 90% of the TV
sets need no repair when in fact less than 90% need no repair.

Discuss the possible consequences of each. (Select all that apply.)

The consumer agency would not take action against the manufacturer when in fact the
manufacturer is making untrue claims about the reliability of the TV sets.

The consumer agency would not take action against the manufacturer when in fact the
manufacturer is making true claims about the reliability of the TV sets.

The consumer agency might take action against the manufacturer when in fact the
manufacturer is at fault.

The consumer agency might take action against the manufacturer when in fact the
manufacturer is not at fault.

(b)

Use α = 0.01, as making a Type II error involves taking action against the manufacturer
when in fact the manufacturer is not at fault.

Use α = 0.01, as making a Type I error involves taking action against the manufacturer
when in fact the manufacturer is not at fault.

Use α = 0.10, as making a Type I error involves not catching the manufacturer when
they are at fault.

Use α = 0.10, as making a Type II error involves not catching the manufacturer when
they are at fault.

10.18

Type I error: Reject Ho when it is true.

In this situation:

We reject the mean temperature of the discharged water is at most 150 F when it is
true.

Type II error: Do not reject Ho when it is false.

In this situation:

We do not reject that the mean temperature of the discharged water is at most 150 F
when it is false.
Type I error is considered more serious becuase it will cost more.

10.20

(a) We will test since we have to check whether the region has
unacceptably high mercury content.
(b) We will prefer to select the significance level 0.1 since level of significant is the
chance of type I error. Here type II error is more serious so we have to reduce type II
error. So we select the higher value.

Exercises 10.12 – 10.44


10.24
The null hypothesis is rejected when the P value is smaller than the significance level.
Here the significance level is 0.05.
Therefore, values which are less than 0.05 will be rejected. Option a, b, and d will be
rejected.
10.26

Let p denote the proportion of grocery store customers who use the
store’s club card.

The large sample of z-test of versus

(a)

From the alternative hypothesis, it is clear that the test is a right-


tailed test.
Compute the P-value associated with the test statistic .

The P-value associated with the test statistic is 0.0808.

(b)

Compute the P-value associated with the test statistic .


The P-value associated with the test statistic is 0.1762.

(c)

Compute the P-value associated with the test statistic .


The P-value associated with the test statistic is 0.025.

(d)

Compute the P-value associated with the test statistic .

The P-value associated with the test statistic is 0.0071.

(e)

Find the P-value associated with the test statistic .


The P-value associated with the test statistic is 0.5675.

10.28

Population characteristic of interest:

= proportion of all American adults who oppose reinstatement of the


draft

Null hypothesis:

Alternative hypothesis:

The level of significance is

Test statistic:

The value of the test statistic is


Assumptions:

This test requires a random sample and a large sample size .The given
sample was a random sample, the population size is much larger than
the sample size, and the sample size was
.Because and ,the large-sample test is
appropriate.

Computations:

from which

=2.02

P-value:

The area under the z curve to the right of 2.02 is 1- 0.9783 = 0.0217

Conclusion:

At the significance level 0.05, we reject because the P-value of


0.0217 is less than the significance level of 0.05. The data provide
convincing evidence that the proportion of American adults who
oppose reinstatement of the draft is greater than two thirds.

10.30

Population characteristic of interest:

Let = proportion of all cell phones users who have received


commercial messages or ads in 2004.

Null hypothesis:

Alternative hypothesis:
The level of significance:

Test statistic:

The value of the test statistic is

Assumptions:

This test requires a random sample and a large sample size .The given
sample was a random sample, the population size is much larger than
the sample size, and the sample size was
.Because f and , the large-sample test is
appropriate.

Computations:

from which

= 15.44

P-value:

The area under the z curve to the right of 15.44 is approximately 0, so


P-value is 0.

Conclusions:
At the significance level 0.05, we reject because the P-value of 0 is
less than the significance level of 0.05. The data provide convincing
evidence that the proportion of all cell phones users who have
received commercial messages or ads in 2004 is greater than the
proportion of 0.13

10.32

Population characteristic of interest:

Let = proportion of U.S adults who feel that they would not be
bothered if the National Security Agency collected records of personal
telephone calls

Null hypothesis:

Alternative hypothesis:

The level of significance,

Test statistic:

The value of the test statistic is


Assumptions:

This test requires a random sample and a large sample size .The given
sample was a random sample, the population size is much larger than
the sample size, and the sample size was .Because
and ,the large-sample test is appropriate.

Computations:

=0.66 from which

= 7.17

P-value: The area under the z curve to the right of 7.17 is approximately 0,so
P-value is 0.

Conclusions:

At the significance level 0.01, we reject because the P-value of 0 is


less than the significance level of 0.01. The data provide convincing
evidence that majority of U.S adult’s feels that they would not be
bothered if the National Security Agency collected records of personal
telephone calls.

10.34

Population characteristic of interest:

Let = proportion of all adults Americans prefer to watch movies at


home rather at movie theatre.

Null hypothesis:

Alternative hypothesis:
The level of significance,

Test statistic:

The value of the test statistic is

Assumptions:

This test requires a random sample and a large sample size .The given
sample was a random sample, the population size is much larger than
the sample size, and the sample size was .Because
and ,the large-sample test is appropriate.

Computations: =0.73 from which

= 14.54

P-value:

The area under the z curve to the right of 14.54 is approximately 0,so
P-value is 0.

Conclusion:

At the significance level 0.05, we reject because the P-value of 0 is


less than the significance level of 0.05. The data provide convincing
evidence that majority of adults Americans prefer to watch movies at
home rather at movie theatre.

10.36
(a)

Given

=0.76

We have to test versus

Test statistic,

=0.529

Here the p-value is 0.2981 which is more than the level of significant
, so we fail to reject our null hypothesis .

That is there is sufficient evidence to conclude that more than 75% of


business monitors employees’ web site visits.
b) We have to test versus

p=0.76

tistic,

=0.46

Here the p-value is 0.3228 which is more than the level of significant
, so we fail to reject our null hypothesis .

That is there is sufficient evidence to conclude that more than 75% of


business monitors employees’ web site visits.

10.38

It is given that the sample of 1000 adult Americans, only 430 could
name at least one justice who is currently serving on the U.S. Supreme
Court.
(a) We have to test whether the data provide sufficient evidence that
fewer than half of adult Americans can name at least one justice
currently serving on the Supreme Court, using a significance level of
0.01.

1. Population characteristic of interest:

Proportion of American adult can name at least one justice


currently serving on the Supreme Court.

2. The Null hypotheses:

The data provides no sufficient evidence that fewer than half of


adult Americans can name at least one justice currently serving on the
Supreme Court, using a significance level of 0.01.

That is,

3. The alternative hypothesis:

The data provides sufficient evidence that fewer than half of adult
Americans can name at least one justice currently serving on the
Supreme Court, using a significance level of 0.01.

That is,

4. Significance level:

5. Test statistic:
6. Assumptions:

It is given that the given data is reasonable to regard the sample as


representative of all American adults.

The sample size was .

Since , the large-sample test is appropriate.

7. Computations:

The sample proportion of adult Americans can name at least one


justice who is currently serving is obtained below.

Thus,
Therefore, the test statistic is .

8. P-value:

This is one-tailed (lower-tailed) test; P-value is the area under


the z curve to the left of the computed z value, 4.43. Since z = –
4.43 is so far out in the lower tail of the standard normal distribution,
the area to this left is negligible and therefore,

9. Conclusion:

Here, , is rejected at the 0.01 level of significance.

Therefore, we can conclude that the data provides sufficient evidence


that fewer than half of adult Americans can name at least one justice
currently serving on the Supreme Court, using a significance level of
0.01.

That is,

10.40

Population characteristic of interest:

Let = proportion of U.S. adults who believe that Census Bureau will
keep information confidential.

Null hypothesis:
Alternative hypothesis:

The level of significance,

The value of the test statistic is

Assumptions:

This test requires a random sample and a large sample size .The given
sample was a random sample, the population size is much larger than
the sample size, and the sample size was .Because
and ,the large-sample test is appropriate.

Computations: =0.43 from which

= -4.43

P-value: The area under the z curve to the left of -4.43 is approximately 0 so
P-value is 0

Conclusion:

At the significance level 0.01, we reject because the P-value of 0 is


less than the significance level of 0.01. The data provide convincing
evidence that fewer than half of U.S. adults believe that Census
Bureau will keep information confidential.

10.42

Population characteristic of interest:

Let = proportion of accidents involving teenage drivers

Null hypothesis:

Alternative hypothesis:

The level of significance is

Test statistics:

The value of the test statistic is

Assumptions: This test requires a random sample and a large sample


size .The given sample was a random sample, the population size is much
larger than the sample size, and the sample size was
.Because and , the large-sample test is
appropriate.
Computations:

= 6.13

P-value: Twice the area under the z curve to the right of 6.13 is
approximately 0 so P-value is 0

Conclusion:

At the significance level 0.05, we reject because the P-value of 0 is


less than the significance level of 0.05. The data provide convincing
evidence that proportion of accidents involving teenage drivers is
different from 0.07.

10.44

It is given that just over 38% of all felons who were released landed
back. That means there is strong evidence that only about 40%
returned back. So it is not necessary to carry out hypothesis test to
determine if the proportion of felons released in 2003 was less than
0.40.

Exercises 10.45 – 10.64

10.46

Population characteristic of interest:

Let = true average percentage of silicon dioxide in a certain type of


cement.

Null hypothesis:

Alternative hypothesis:
The level of significance is 0.01

Test statistic:

We are given that , and

Since is known, the value of the test statistic is

= 3.32

The value of the z statistic is 3.32

P-value:

P-value is twice the area under the z curve to the right of

Area under the z curve to the right of is 1-0.9995 = 0.0005

So the P-value is

Conclusion:

Since P-value of 0.001 is less than the level of significance 0.01 we


reject the null hypothesis. There is convincing evidence that the
percentage of silicon dioxide in a certain type of cement is not equal
to 5.

10.48

The data represent t test.

a)
The P-value of a t test is,

From the t distribution table, show the two-tail test, degree of


freedom 9 and t-test statistics is 0.73 and the P-value is 0.470.

The P-value of a t test is .

b)

The P-value of a t test is,

From the t distribution table, show the upper-tail test, degree of


freedom 10 and t-test statistics is 0.50 and the P-value is 0.314.

The P-value of a t test is .

c)

The P-value of a t test is,

From the t distribution table, show the lower-tail test, degree of


freedom 19 and t-test statistics is -2.10 and the P-value is less than
0.025.

The P-value of a t test is .

d)

The P-value of a t test is,

From the t distribution table, show the two-tail test, degree of


freedom 39 and t-test statistics is 1.70 and the P-value is 0.096.

The P-value of a t test is .

10.50

10.52

Population characteristic of interest:


Let be the true average number of credit records in an
undergraduate college.

Null hypothesis:

Alternative hypothesis:

The level of significance is 0.05

Test statistic:

We are given that , and

Since is known, the value of the test statistic is

= -14.3

The value of the z statistic is -14.3

P-value is the area under the z curve to the left of

Area under the z curve to the left of is 0

So the P-value is 0.

Conclusion:

Since P-value of 0 is less than the level of significance 0.05.we reject


the null hypothesis. There is convincing evidence that the true average
number of credit records in an undergraduate college is less than 4.09
10.54

The population characteristic of interest:

Let be the mean minimum purchase amount for which Canadians


consider the use of debit card to be appropriate.

Null hypothesis:

Alternative hypothesis:

The level of significance is 0.01

We are given that , and

Since is unknown, the value of the test statistic is

= -5.00

The value of the t statistic is -5.00

P-value is the area under the t curve to the left of

Degrees of freedom =

Since t curve is symmetric about 0 so

P-value = the area under the t curve to the left of

= the area under the t curve to the right of


The area under the t curve to the right of is 0

So the P-value is 0

Conclusion:

Since P-value of 0 is less than the level of significance 0.01 we reject


the null hypothesis.

There is convincing evidence that the mean minimum purchase


amount for which Canadians considers the use of debit card to be
appropriate is less than $10.

10.56

(a) The Population characteristic of interest:

Let = mean time spent using the Internet by Canadians.

Null hypothesis:

Alternative hypothesis:

The level of significance is 0.05

We are given that , and

Since is known, the value of the test statistic is

=1.26
The value of the z statistic is 1.26

P-value is the area under the z curve to the right of

Area under the z curve to the right of is 1-0.8962 = 0.1038

So the P-value is 0.1038

Since P-value of 0.1038 is greater than the level of significance 0.05


we fail to reject the null hypothesis. There is no convincing evidence
that the mean time spent using the Internet by Canadians is greater
than 12.5 hours

(b) The Population characteristic of interest:

= mean time spent using the Internet by Canadians

Null hypothesis:

Alternative hypotheses:

The level of significance is 0.05

We are given that , and

Since is known, the value of the test statistic is

=3.16

The value of the z statistic is 3.16


P-value is the area under the z curve to the right of

Area under the z curve to the right of is approximately 0.

So the P-value is 0

Since P-value of 0 is less than the level of significance 0.05 we reject


the null hypothesis. There is convincing evidence that the mean time
spent using the Internet by Canadians is greater than 12.5 hours

(c) Null hypothesis was not rejected in part (a) because there was
large variation in

the sample where as in part (b) there is not much variation in the
sample so the

null hypothesis is rejected.

10.58

It is given that the survey of teenagers and parents included question


about Internet use. It was reported that for a sample of 676 randomly
selected parents of Canadian teens, the mean number of hours parents
thought their teens spent online was 6.5 and the sample standard
deviation was 8.6.

(a) We have to

1. Population characteristic of interest:

Mean number of hours parents thought their teens spent online

2. The Null hypotheses:

The data provides no sufficient evidence that the mean number of


hours that parents think their teens spend online is less than 10 hours
per week.

That is,

3. The alternative hypothesis:


The data provides sufficient evidence that the mean number of
hours that parents think their teens spend online is less than 10 hours
per week.

That is,

4. Let us consider the level of significance:

5. Test statistic:

6. Assumptions:

It is given that the given data is reasonable to regard the sample of


parents of Canadian teens as representative of time spend in online
and that the distribution is approximately normal. So this is reasonable
to proceed with the t-test.

7. Computations:

From the given information,

The degrees of freedom of t- test for given information:


Therefore, the test statistic is .

8. P-value:

This is one-tailed (left tailed) test; P-value is the area under


the t curve to the left side of the computed t value, 10.58. Because
df = 675, we can use df = 675 column with of the t table, the
area to its left is negligible and therefore, .

9. Conclusion:

Here, , is rejected at the 0.05 level of


significance.

Therefore, the data provides sufficient evidence that the mean number
of hours that parents think their teens spend online is less than 10
hours per week at 5% level of significance.

That is,

(b)

In the study of the teenagers and parents included question about


Internet use, the data results that there is sufficient evidence that the
mean number of hours that teens spend online is greater than 10 hours
per week at 5% level of significance.

For the same study of the teenagers and parents included question
about Internet use, the data results that there is sufficient evidence
that the mean number of hours that parents think their teens spend
online is less than 10 hours per week at 5% level of significance.

From the above two interpretations, we can conclude that the parents
are wrongly thought about their teens for spending time in online.

10.60

Given , , ,

We have to test versus

Test statistic,

P-value: This is lower-tailed test (the inequality in is “less than” ).


So the p-value is the area to the left of the computed t value.
Because degrees of freedom =64 – 1 = 63. We can use the df =63
column in tail areas for t curve to find the p value. With t = -3.89, we
obtain

P-value = area to the left of –3.89 = area to the right of 3.89 = 0

Here p-value is less than the level of significant , so we reject


our Hypothesis.

That is there is no sufficient evidence that the population mean for


males from non-English-speaking Asian countries is smaller than 10.

10.62

It is given that the mean time to distraction for teenage boys working
on an independent task was 4 minutes. Suppose that the mean was
based on a random sample of 50 teenage Australian boys and that the
sample standard deviation was 1.4 minutes.

We have to test whether the data provide sufficient evidence that the
average attention span for teenage boys is less than 5 minutes at level
of significance .

1. Population characteristic of interest:

Mean attention span for teenage boys

2. The Null hypotheses:

The data provides no sufficient evidence to conclude that the


average attention span for teenage boys is less than 5 minutes at level
of significance .

That is,

3. The alternative hypothesis:

The data provides sufficient evidence to conclude that the


average attention span for teenage boys is less than 5 minutes at level
of significance .

That is,

4. Significance level:

5. Test statistic:

6. Assumptions:
It is given that the given data is reasonable to regard the sample of
teenage boys as representative of boys’ working on an independent
task and that the distribution of attention span is approximately
normal. So this is reasonable to proceed with the t-test.

7. Computations:

From the given information,

The degrees of freedom of t- test for given information:

Therefore, the test statistic is .

8. P-value:

This is one-tailed (lower-tailed) test; P-value is the area under


the t curve to the left tailed of the computed t value, 5.051. Because
df = 49, we can use df = 49 column with of the t table is
approximately zero.

9. Conclusion:
Here, , is rejected at the 0.01 level of significance.

Therefore, the data provides sufficient evidence to conclude that the


average attention span for teenage boys is less than 5 minutes at level
of significance .

That is,

10.64

The population characteristic of interest:

Let be the true average uptake for cultures without nitrates

Null hypothesis:

Alternative hypothesis:

The level of significance is 0.10

We are given the following data:

725 584 788


1 9 3
687 895 817
1 7 8
963 797 752
2 8 3
686 706 872
6 4 4
909 749 746
4 4 8

We are given that, and

Since is unknown, the value of the test statistic is


= -0.82

The value of the t statistic is -0.82

Since it is a lower tailed test so the P-value is the area to the left
of

As the t curve is symmetric about 0.

So the P-value = area to the left of = area to the right


of

For the df =14, and by rounding the test statistic value to 0.8we get

Area to the right of 0.8 = 0.218

P-value is 0.218

Conclusion:

Since P-value of 0.218 is greater than the level of significance 0.10 we


fail to reject the null hypothesis. So the data suggest that the addition
of nitrates do not result in a decrease in the true average uptake.

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