(1) We are conducting many hypothesis tests to test a claim. Assuming the null hypothesis is true, approximately how many of the 200 tests, using a significance level of 5%, will incorrectly find significance?
(1) We are conducting many hypothesis tests to test a claim. Assuming the null hypothesis is true, approximately how many of the 200 tests, using a significance level of 5%, will incorrectly find significance?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![(1) We are conducting many hypothesis tests to test a claim. Assuming the null hypothesis is true,
approximately how many of the 200 tests, using a significance level of 5%, will incorrectly find
significance?
(2) For the situation described below, indicate whether it makes more sense to use a relatively large
significance level (such as a = 0.10) or a relatively small significance level (such as a = 0.01).
Testing to see if a large investment firm is participating in the illegal prac-
tice of insider trading. If there is evidence, the Securities and Exchange
Commission will file a lawsuit against them.
(3) Dropouts The National Center for Education Statistics reports that the high school dropout
rate is 5.3%. Due to tougher standards and high-stakes tests, teachers in New York State
believe that the high school dropout rate in New York State differs from the national rate.
(a) Define the relevant parameter and state the null and alternative hypothesis
(b) The teachers select a random sample and construct a 95% confidence interval of (0.049, 0.061).
Using the confidence interval, what is the conclusion of the test? Include an indication of
the significance level.
(c) State the conclusion of test in context.
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8211b341-a202-412c-99ae-39c5cdf99f67%2F5482277e-75b2-4358-acee-461b719f7fcb%2Fmfxpj3s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(1) We are conducting many hypothesis tests to test a claim. Assuming the null hypothesis is true,
approximately how many of the 200 tests, using a significance level of 5%, will incorrectly find
significance?
(2) For the situation described below, indicate whether it makes more sense to use a relatively large
significance level (such as a = 0.10) or a relatively small significance level (such as a = 0.01).
Testing to see if a large investment firm is participating in the illegal prac-
tice of insider trading. If there is evidence, the Securities and Exchange
Commission will file a lawsuit against them.
(3) Dropouts The National Center for Education Statistics reports that the high school dropout
rate is 5.3%. Due to tougher standards and high-stakes tests, teachers in New York State
believe that the high school dropout rate in New York State differs from the national rate.
(a) Define the relevant parameter and state the null and alternative hypothesis
(b) The teachers select a random sample and construct a 95% confidence interval of (0.049, 0.061).
Using the confidence interval, what is the conclusion of the test? Include an indication of
the significance level.
(c) State the conclusion of test in context.
4
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![Elementary Statistics: Picturing the World (7th E…](https://www.bartleby.com/isbn_cover_images/9780134683416/9780134683416_smallCoverImage.gif)
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
![The Basic Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319042578/9781319042578_smallCoverImage.gif)
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
![Introduction to the Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319013387/9781319013387_smallCoverImage.gif)
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman