Assignment 7 - Hypothesis Testing 2

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School

Institute of Health Profession Education & Research, KMU Peshawar *

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MISC

Subject

Economics

Date

Nov 24, 2024

Type

xlsx

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Uploaded by CountAntelope14965

Time 17 11 a. Formulate the null and alternative hypotheses for this application. 12 b. What is the p-value? 23 c. At α = 0.01, what is your conclusion? 20 23 15 A. 16 22 18 23 25 12 12 20 18 12 19 11 B 20 21 11 Z= 18 14 P-value= 13 13 16 C 22 18 23 JCT, Inc., bases charges to a client on the assumption that telephone surveys can be completed in a mean time of 15 minutes or less. If a longer mean survey time is necessary, a premium rate is charged. A sample of 30 surveys provided the survey times shown on the left. Based upon past studies, the population standard deviation is assumed known with 4 minutes. Is the premium rate justified? Let μ be the population mean survey time. Null Hypothesis (H0): μ ≤ 15 minutes (No need for premium rate) Alternative Hypothesis (H1): μ > 15 minutes (Premium rate is justified) Given that α = 0.01: If the p-value < α, you reject the null hypothesis. If the p-value ≥ α, you fail to reject the null hypothesis. In this case, since the p-value (0.002397223) is less than the significan reject the null hypothesis. This suggests that there is enough eviden survey time is longer than 15 minutes, justifying the premium rate.

Time 2.82052952579567 Mean 17.266667 0.002397223057307 Standard Error 0.8036316 Median 18 Mode 12 Standard Deviation 4.4016716 Sample Variance 19.374713 Kurtosis -1.327322 Skewness 0.0086375 Range 14 Minimum 11 Maximum 25 Sum 518 Count 30 ) nce level (α = 0.01), you would nce to conclude that the mean

I was told that houses in New Territory area is avaiable at mean cost of $390,000 or less per lot. Assume that yo a sample mean of $410,000 per lot and a sample standard deviation of $25,000. Use a 0.01 level of significance to test the validity of information about New Territory houses. a. Formulate the null and alternative hypotheses for this application. b. What is the p-value? c. At α = 0.01, what is your conclusion? A. B. t-statistic= -5.184592559 df= 41 P-value= 3.091055E-06 C Given: Population mean ( μ ) claimed by the information: $390,000 Sample mean (ˉ X ˉ): $410,000 Sample standard deviation ( σ ): $25,000 Sample size ( n ): 42 H 0: μ ≤390,000 (Null hypothesis: The mean cost per lot is $390,000 or less) H 1: μ >390,000 (Alternative hypothesis: The mean cost per lot is more than $390,000) Since the p-value of 3.09106×10−6 is much smaller than the significance level ( α =0.01), we would reject the null hypothesis. Therefore, there is sufficient evidence to suggest that the mean cost of houses in the New Territory area is more than $390,000.

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