6. In a representative sample of 817 coffee growers from Country X, 450 growers were certified to sell organic coffee markets while 62 growers were transitioning to become organic certified. In Country Y, 66% of coffee growers are organic certified. Is there evidence to indicate that fewer than 66% of the coffee growers in Country X are either organic certified or transitioning to become organic certified? State your conclusion so that there is only a 5% chance of making a Type I error (i.e., test using a = 0.05). (a) What are the hypotheses for this test? Ho: H: (b) Calculate the value of the test statistic ze (round to two decimal places as needed): Hint: Before finding , you will first need to calculate the sample proportion p. Pay close attention to what is being tested. EITHER "certified" OR "transitioning" counts as a success for your proportion here. (c) Calculate the p-value (round to three decimal places as needed). You should find one of the following useful for part C: P(: < 0.66) 0.7454 P(: < -0.033) 0.4868 P(: < -2.01) 0.0222 P(: < -6.59) 0 (d) What is the conclusion of the test? REJECT or FAIL TO REJECT the null hypothesis because the p-value is LESS THAN or GREATER THAN the probability of making a Type I error. Therefore, there is SUFFICIENT or INSUFFICIENT evidence to indicate that fewer than 66% of the coffee growers in Country X are either organic certified or transitioning to become organic certified. (Circle the correct capitalized word or phrase in each of the three places a choice is given.) (e) If this were a two-tail test, with everything else the same, would your conclusion be different? Explain.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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6. In a representative sample of 817 coffee growers from Country X, 450 growers were certified to sell organic coffee
markets while 62 growers were transitioning to become organic certified. In Country Y, 66% of coffee growers are
organic certified. Is there evidence to indicate that fewer than 66% of the coffee growers in Country X are either
organic certified or transitioning to become organic certified? State your conclusion so that there is only a 5%
chance of making a Type I error (i.c., test using a = 0.05).
(a) What are the hypotheses for this test?
Ho:
(b) Calculate the value of the test statistic za (round to two decimal places as needed):
Hint: Before finding 2, you will first need to calculate the sample proportion p. Pay close attention to what is
being tested. EITHER "certified" OR "transitioning" counts as a success for your proportion here.
(c) Calculate the p-value (round to three decimal places as needed).
You should find one of the following useful for part C:
P(: < 0.66) 0.7454 P(: < -0.033) 0.4868 P(: < -2.01) 0.0222
P(: < -6.59) 0
(d) What is the conclusion of the test?
REJECT or FAIL TO REJECT the null hypothesis because the p-value is LESS THAN or GREATER THAN the
probability of making a Type I error. Therefore, there is SUFFICIENT or INSUFFICIENT evidence to indicate
that fewer than 6% of the coffee growers in Country X are either organic certified or transitioning to become
organic certified. (Circle the correct capitalized word or phrase in cach of the three places a choice is given.)
(e) If this were a two-tail test, with everything else the same, would your conclusion be different? Explain.
Transcribed Image Text:6. In a representative sample of 817 coffee growers from Country X, 450 growers were certified to sell organic coffee markets while 62 growers were transitioning to become organic certified. In Country Y, 66% of coffee growers are organic certified. Is there evidence to indicate that fewer than 66% of the coffee growers in Country X are either organic certified or transitioning to become organic certified? State your conclusion so that there is only a 5% chance of making a Type I error (i.c., test using a = 0.05). (a) What are the hypotheses for this test? Ho: (b) Calculate the value of the test statistic za (round to two decimal places as needed): Hint: Before finding 2, you will first need to calculate the sample proportion p. Pay close attention to what is being tested. EITHER "certified" OR "transitioning" counts as a success for your proportion here. (c) Calculate the p-value (round to three decimal places as needed). You should find one of the following useful for part C: P(: < 0.66) 0.7454 P(: < -0.033) 0.4868 P(: < -2.01) 0.0222 P(: < -6.59) 0 (d) What is the conclusion of the test? REJECT or FAIL TO REJECT the null hypothesis because the p-value is LESS THAN or GREATER THAN the probability of making a Type I error. Therefore, there is SUFFICIENT or INSUFFICIENT evidence to indicate that fewer than 6% of the coffee growers in Country X are either organic certified or transitioning to become organic certified. (Circle the correct capitalized word or phrase in cach of the three places a choice is given.) (e) If this were a two-tail test, with everything else the same, would your conclusion be different? Explain.
2. Pharmaceutical companies spend billions of dollars per year on research and development of new drugs. The
pharmaceutical company must subject each new drug to lengthy and involved testing before receiving the necessary
permission from the Food and Drug Administration (FDA) to market the drug. The FDA's policy is that the phar-
maceutical company must provide substantial evidence that a new drug is safe prior to receiving FDA approval, so
that the FDA can confidently certify the safety of the drug to potential consumers.
(a) If the new drug testing were to be placed in a test of hypothesis framework, would the null hypothesis be
that the drug is safe or unsafe? The alternative hypothesis? (In an actual test, "safety" could be quantified using
population parameters; Problem 7 is a conceptual exercise.) Fill in the blanks below.
The null hypothesis would be that the drug is
be that the drug is
and the alternative hypothesis would
(b) Given the choice of null and alternative hypotheses in part (a), describe the Type I and Type II errors in terms
of this application. Define a and B in terms of this application. Fill in the blanks below.
The Type I error for this problem would be to conclude that the drug is
is actually
when the drug
The Type II error for this problem would be to conclude that the drug is
when the drug is actually
In this application a is the probability of concluding that a drug
safe when actually
and 3 is the probability of concluding that a drug
safe
it
when the drug actually
safe.
(c) If the FDA wants to be very confident that the drug is safe before permitting it to be marketed, is it more
important that a or 3 be small? Circle the correct answer.
(1) The value of a should be minimized to minimize the risk of falsely concluding the drug is safe when it is not
safe and could hurt people.
(ii) The value of 8 should be minimized to minimize the risk of falsely concluding the drug is not safe when it
is safe and could help people.
(iii) The value of a should be minimized to minimize the risk of falsely concluding the drug is not safe when it
is safe and could help people.
(iv) The value of 3 should be minimized to minimize the risk of falsely concluding the drug is safe when it is not
safe and could hurt people.
Transcribed Image Text:2. Pharmaceutical companies spend billions of dollars per year on research and development of new drugs. The pharmaceutical company must subject each new drug to lengthy and involved testing before receiving the necessary permission from the Food and Drug Administration (FDA) to market the drug. The FDA's policy is that the phar- maceutical company must provide substantial evidence that a new drug is safe prior to receiving FDA approval, so that the FDA can confidently certify the safety of the drug to potential consumers. (a) If the new drug testing were to be placed in a test of hypothesis framework, would the null hypothesis be that the drug is safe or unsafe? The alternative hypothesis? (In an actual test, "safety" could be quantified using population parameters; Problem 7 is a conceptual exercise.) Fill in the blanks below. The null hypothesis would be that the drug is be that the drug is and the alternative hypothesis would (b) Given the choice of null and alternative hypotheses in part (a), describe the Type I and Type II errors in terms of this application. Define a and B in terms of this application. Fill in the blanks below. The Type I error for this problem would be to conclude that the drug is is actually when the drug The Type II error for this problem would be to conclude that the drug is when the drug is actually In this application a is the probability of concluding that a drug safe when actually and 3 is the probability of concluding that a drug safe it when the drug actually safe. (c) If the FDA wants to be very confident that the drug is safe before permitting it to be marketed, is it more important that a or 3 be small? Circle the correct answer. (1) The value of a should be minimized to minimize the risk of falsely concluding the drug is safe when it is not safe and could hurt people. (ii) The value of 8 should be minimized to minimize the risk of falsely concluding the drug is not safe when it is safe and could help people. (iii) The value of a should be minimized to minimize the risk of falsely concluding the drug is not safe when it is safe and could help people. (iv) The value of 3 should be minimized to minimize the risk of falsely concluding the drug is safe when it is not safe and could hurt people.
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