Answered: A company selling a new econometrics…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A company selling a new econometrics software advertises it with the following slogan: “students using this software improve their grade, on average, by more than 10%!” A random sample of 12 students that used the software saw the following percentage improvements in their grades: 13.5, 9.4, 11.1, 10.4, 10.5, 11.2, 78.2, 8.5, 14.0, 8.8, 11.5, and 6.1. Assume that improvements in the grades in the population are normally distributed. c) Test the company's claim at the 5% significance level. d) Interpret the result of the test statistic. e) After reading your report, the company changes its slogan to “students using this software improve their grade, on average, by more than 5%!” Test the company's new claim at the 5% significance level.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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