Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to determine whether this claim is true. The auditor randomly selected a sample of 100 days and found that the sample mean earnings was $495 with a sample standard deviat 9.75. a) Calculate the 97% confidence interval for the population mean daily earning. Assist the auditor in conducting a hypothesis test, at the 3% level of significance, to de whether the claim about their average daily earnings was overstated. b) State the null and the alternative hypothesis for this test. c) Using the p-value approach, state the decision rule for this test.

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
icon
Concept explainers
Topic Video
Question

Need answers and proper working for question 2

All patients admitted to a particular hospital can be released on the same day or kept overnight for
observation. In a sample of 2550 patients, 1020 were kept overnight for observation
a) What is the point estimate p for the proportion of all patients kept overnight for
observation?
b) Construct a 99% confidence interval for the proportion of all patients kept overnight for
observation.
Question 2
Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to
determine whether this claim is true. The auditor randomly selected a sample of 100
days and found that the sample mean earnings was $495 with a sample standard deviation of
9.75.
a) Calculate the 97% confidence interval for the population mean daily earning.
Assist the auditor in conducting a hypothesis test, at the 3% level of significance, to determine
whether the claim about their average daily earnings was overstated.
b) State the null and the alternative hypothesis for this test.
c) Using the p-value approach, state the decision rule for this test.
d) Calculate the value of the test statistic for this test.
e) Calculate the p-value for this test?
f) State the conclusion of this test. Give reason for your answer.
Transcribed Image Text:All patients admitted to a particular hospital can be released on the same day or kept overnight for observation. In a sample of 2550 patients, 1020 were kept overnight for observation a) What is the point estimate p for the proportion of all patients kept overnight for observation? b) Construct a 99% confidence interval for the proportion of all patients kept overnight for observation. Question 2 Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to determine whether this claim is true. The auditor randomly selected a sample of 100 days and found that the sample mean earnings was $495 with a sample standard deviation of 9.75. a) Calculate the 97% confidence interval for the population mean daily earning. Assist the auditor in conducting a hypothesis test, at the 3% level of significance, to determine whether the claim about their average daily earnings was overstated. b) State the null and the alternative hypothesis for this test. c) Using the p-value approach, state the decision rule for this test. d) Calculate the value of the test statistic for this test. e) Calculate the p-value for this test? f) State the conclusion of this test. Give reason for your answer.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Sample space, Events, and Basic Rules of Probability
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
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