7.3 homework

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Sam Houston State University *

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387W

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Economics

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Feb 20, 2024

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BUILDING BASIC SKILLS AND VOCABULARY 1. Explain how to find critical values for a t @ distribution. 2. Explain how to use a t @ test to test a hypothesized mean m when s is unknown. What assumptions are necessary? In Exercises 3– 8, find the critical value(s) and rejection region(s) for the type of t-test with level of significance a and sample size n. 3. Left-tailed test, a = 0.10, n = 20 4. Left-tailed test, a = 0.01, n = 35 5. Right-tailed test, a = 0.05, n = 23 6. Right-tailed test, a = 0.01, n = 31 7. Two-tailed test, a = 0.05, n = 27 8. Two-tailed test, a = 0.10, n = 38 Graphical Analysis In Exercises 9 and 10, state whether each standardized test statistic t allows you to reject the null hypothesis. Explain. 9. (a) t = 2.091 10. (a) t = 1.705 (b) t = 0 (b) t = - 1.755 (c) t = - 1.08 (c) t = - 1.585 (d) t = - 2.096 (d) t = 1.745 t t 0 = 2.086 2 3 4 1 1 3 4 0 t t 0 = 1.725 t 0 = 1.725 2 3 4 1 1 3 2 4 0 In Exercises 11–14, test the claim about the population mean m at the level of significance a . Assume the population is normally distributed. If convenient, use technology. 11. Claim: m = 15; a = 0.01. Sample statistics: x = 13.9, s = 3.23, n = 36 12. Claim: m 7 25; a = 0.05. Sample statistics: x = 26.2, s = 2.32, n = 17 13. Claim: m Ú 8000; a = 0.01. Sample statistics: x = 7700, s = 450, n = 25 14. Claim: m 52,200; a = 0.05. Sample statistics: x = 53,220, s = 2700, n = 34 USING AND INTERPRETING CONCEPTS Testing Claims Using Rejection Regions In Exercises 15–22, (a) identify the claim and state H 0 and H a , (b) find the critical value(s) and identify the rejection region(s), (c) find the standardized test statistic t, (d) decide whether to reject or fail to reject the null hypothesis, and (e) interpret the decision in the context of the original claim. Assume the population is normally distributed. If convenient, use technology. 15. Used Car Cost A used car dealer says that the mean price of a three-year-old sports utility vehicle (in good condition) is $20,000. You suspect this claim is incorrect and find that a random sample of 22 similar vehicles has a mean price of $20,640 and a standard deviation of $1990. Is there enough evidence to reject the claim at a = 0.05? 7.3 Exercises
16. IRS Wait Times The Internal Revenue Service claims that the mean wait time for callers during a recent tax filing season was at most 15 minutes. A random sample of 40 callers has a mean wait time of 16.7 minutes and a standard deviation of 2.7 minutes. Is there enough evidence to reject the claim at a = 0.01? (Adapted from Internal Revenue Service) 17. Credit Card Balances A credit card company claims that the mean credit card debt for individuals is greater than $5000. You want to test this claim. You find that a random sample of 37 cardholders has a mean credit card balance of $5122 and a standard deviation of $625. At a = 0.05, can you support the claim? (Adapted from TransUnion) 18. Battery Life A company claims that the mean battery life of their MP3 player is at least 30 hours. You suspect this claim is incorrect and find that a random sample of 18 MP3 players has a mean battery life of 28.5 hours and a standard deviation of 1.7 hours. Is there enough evidence to reject the claim at a = 0.01? 19. Waste Recycled An environmentalist estimates that the mean amount of waste recycled by adults in the United States is more than 1 pound per person per day. You want to test this claim. You find that the mean waste recycled per person per day for a random sample of 13 adults in the United States is 1.51 pounds and the standard deviation is 0.28 pound. At a = 0.10, can you support the claim? (Adapted from U.S. Environmental Protection Agency) 20. Waste Generated As part of your work for an environmental awareness group, you want to test a claim that the mean amount of waste generated by adults in the United States is less than 5 pounds per day. In a random sample of 19 adults in the United States, you find that the mean waste generated per person per day is 4.43 pounds with a standard deviation of 1.21 pounds. At a = 0.01, can you support the claim? (Adapted from U.S. Environmental Protection Agency) 21. Annual Salary An employment information service claims the mean annual salary for full-time male workers over age 25 and without a high school diploma is $26,000. The annual salaries (in dollars) for a random sample of 10 full-time male workers without a high school diploma are shown in the table at the left. At a = 0.05, test the claim that the mean salary is $26,000. (Adapted from U.S. Bureau of Labor Statistics) 22. Annual Salary An employment information service claims the mean annual salary for full-time female workers over age 25 and without a high school diploma is more than $18,500. The annual salaries (in dollars) for a random sample of 12 full-time female workers without a high school diploma are shown in the table at the left. At a = 0.10, is there enough evidence to support the claim that the mean salary is more than $18,500? (Adapted from U.S. Bureau of Labor Statistics) Annual salaries 25,685 23,314 21,874 24,689 25,818 20,267 30,282 29,041 24,097 28,455 TABLE FOR EXERCISE 21 Annual salaries 19,665 17,312 19,794 20,403 21,864 20,177 18,328 22,445 21,354 20,143 19,316 20,237 TABLE FOR EXERCISE 22
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