1. A researcher is interested in the world average growth rate. To study thus research question, a random sample of 7 countries is chosen and the growth rates for them is summarized in the table below: Country Growth rate (%) A 5 B 10 C 3 -6 E F 4 G -3 The researcher believe that growth rate of world are normally distributed with population variance of 2. The researcher believes that the world average growth rate is 2. Test the researcher hypothesis at 1% significance level against the two sided alternative using z-comparison approach. Clearly write null and alternative hypothesis for this question. b) Does your answer change if the significance level is changed to 10% significance level in part a)? Explain. c) Explain in words, how decreasing the significance level affects your hypothesis testing: Does 'rejecting the null hypothesis' scenario become less or more strict?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
A researcher is interested in the world average growth rate. To study thus research question, a
random sample of 7 countries is chosen and the growth rates for them is summarized in the table
1.
below:
Country Growth rate (%)
A
5
В
10
3
-6
E
F
4
G
-3
The researcher believe that growth rate of world are normally distributed with population
variance of 2.
a)
The researcher believes that the world average growth rate is 2. Test the researcher
hypothesis at 1% significance level against the two sided alternative using z-comparison
approach. Clearly write null and alternative hypothesis for this question.
b)
Does your answer change if the significance level is changed to 10% significance level
in part a)? Explain.
c)
Explain in words, how decreasing the significance level affects your hypothesis testing:
Does 'rejecting the null hypothesis' scenario become less or more strict?
Transcribed Image Text:A researcher is interested in the world average growth rate. To study thus research question, a random sample of 7 countries is chosen and the growth rates for them is summarized in the table 1. below: Country Growth rate (%) A 5 В 10 3 -6 E F 4 G -3 The researcher believe that growth rate of world are normally distributed with population variance of 2. a) The researcher believes that the world average growth rate is 2. Test the researcher hypothesis at 1% significance level against the two sided alternative using z-comparison approach. Clearly write null and alternative hypothesis for this question. b) Does your answer change if the significance level is changed to 10% significance level in part a)? Explain. c) Explain in words, how decreasing the significance level affects your hypothesis testing: Does 'rejecting the null hypothesis' scenario become less or more strict?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
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…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
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
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman