A sample of 96 observations has been selected to test whether the population mean is greater than 25. The sample showed an average of 26 and a standard deviation of 5.7. You want to test this hypothesis at 90% level of confidence using the critical value approach. First, compute the critical value and the test statistics associated with this test. Second, compute the difference between the test statistic and the critical value (test statistic - critical value). What is this difference?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
A sample of 96 observations has been selected to test whether the population mean is greater than 25. The sample showed an average of 26 and a standard deviation of 5.7. You want to test this hypothesis at 90% level of confidence using the critical value approach. First, compute the critical value and the test statistics associated with this test. Second, compute the difference between the test statistic and the critical value (test statistic - critical value). What is this difference?
NOTE: WRITE YOUR ANSWER WITH 4 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN. MAKE SURE YOU INDICATE THE SIGN OF THIS DIFFERENCE CORRECTLY.
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