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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
(a)
From the given hypotheses, Type I and Type II error can be described as below-
Here, Type I error is- The DNA test indicates that a particular man is not the father when
actually he is the father.
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-
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.
(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.
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
In this situation:
We reject the mean temperature of the discharged water is at most 150 F when it is
true.
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.
Let p denote the proportion of grocery store customers who use the
store’s club card.
(a)
(b)
(c)
(d)
(e)
10.28
Null hypothesis:
Alternative hypothesis:
Test statistic:
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:
10.30
Null hypothesis:
Alternative hypothesis:
The level of significance:
Test statistic:
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:
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
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:
Test statistic:
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:
= 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:
10.34
Null hypothesis:
Alternative hypothesis:
The level of significance,
Test statistic:
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.
= 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:
10.36
(a)
Given
=0.76
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 .
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 .
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.
That is,
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:
7. Computations:
Thus,
Therefore, the test statistic is .
8. P-value:
9. Conclusion:
That is,
10.40
Let = proportion of U.S. adults who believe that Census Bureau will
keep information confidential.
Null hypothesis:
Alternative hypothesis:
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.
= -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:
10.42
Null hypothesis:
Alternative hypothesis:
Test statistics:
= 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:
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.
10.46
Null hypothesis:
Alternative hypothesis:
The level of significance is 0.01
Test statistic:
= 3.32
P-value:
So the P-value is
Conclusion:
10.48
a)
The P-value of a t test is,
b)
c)
d)
10.50
10.52
Null hypothesis:
Alternative hypothesis:
Test statistic:
= -14.3
So the P-value is 0.
Conclusion:
Null hypothesis:
Alternative hypothesis:
= -5.00
Degrees of freedom =
So the P-value is 0
Conclusion:
10.56
Null hypothesis:
Alternative hypothesis:
=1.26
The value of the z statistic is 1.26
Null hypothesis:
Alternative hypotheses:
=3.16
So the P-value is 0
(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
10.58
(a) We have to
That is,
That is,
5. Test statistic:
6. Assumptions:
7. Computations:
8. P-value:
9. Conclusion:
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)
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 , , ,
Test statistic,
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 .
That is,
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:
8. P-value:
9. Conclusion:
Here, , is rejected at the 0.01 level of significance.
That is,
10.64
Null hypothesis:
Alternative hypothesis:
Since it is a lower tailed test so the P-value is the area to the left
of
For the df =14, and by rounding the test statistic value to 0.8we get
P-value is 0.218
Conclusion: