Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail.† An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported the percentage of their wheat lost to hail. 15 7 8 10 13 19 13 10 5 10 23 18 11 11 10 4 The sample mean is x = 11.7%. Let x be a random variable that represents the percentage of wheat crop in that county lost to hail. Assume that x has a normal distribution and σ = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use α = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test? H0: μ = 11%; H1: μ > 11%; right-tailedH0: μ = 11%; H1: μ ≠ 11%; two-tailed H0: μ = 11%; H1: μ < 11%; left-tailedH0: μ ≠ 11%; H1: μ = 11%; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. The standard normal, since we assume that x has a normal distribution with known σ.The Student's t, since n is large with unknown σ. The Student's t, since we assume that x has a normal distribution with known σ.The standard normal, since we assume that x has a normal distribution with unknown σ. Compute the z value of the sample test statistic. (Round your answer to two decimal places.) (c) Find (or estimate) the P-value. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α? At the α = 0.01 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are not statistically significant. (e) State your conclusion in the context of the application. There is sufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.There is insufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.

Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail.† An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported the percentage of their wheat lost to hail. 15 7 8 10 13 19 13 10 5 10 23 18 11 11 10 4 The sample mean is x = 11.7%. Let x be a random variable that represents the percentage of wheat crop in that county lost to hail. Assume that x has a normal distribution and σ = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use α = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test? H0: μ = 11%; H1: μ > 11%; right-tailedH0: μ = 11%; H1: μ ≠ 11%; two-tailed H0: μ = 11%; H1: μ < 11%; left-tailedH0: μ ≠ 11%; H1: μ = 11%; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. The standard normal, since we assume that x has a normal distribution with known σ.The Student's t, since n is large with unknown σ. The Student's t, since we assume that x has a normal distribution with known σ.The standard normal, since we assume that x has a normal distribution with unknown σ. Compute the z value of the sample test statistic. (Round your answer to two decimal places.) (c) Find (or estimate) the P-value. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α? At the α = 0.01 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are not statistically significant. (e) State your conclusion in the context of the application. There is sufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.There is insufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.

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Description: Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail.† An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported the percentage of their wheat l

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

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The sample mean is x = 11.7%. Let x be a random variable that represents the percentage of wheat crop in that county lost to hail. Assume that x has a normal distribution and σ = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use α = 0.01.

(a) What is the level of significance?

State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

H₀: μ = 11%; H₁: μ > 11%; right-tailedH₀: μ = 11%; H₁: μ ≠ 11%; two-tailed H₀: μ = 11%; H₁: μ < 11%; left-tailedH₀: μ ≠ 11%; H₁: μ = 11%; two-tailed

(b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.

The standard normal, since we assume that x has a normal distribution with known σ.The Student's t, since n is large with unknown σ. The Student's t, since we assume that x has a normal distribution with known σ.The standard normal, since we assume that x has a normal distribution with unknown σ.

Compute the z value of the sample test statistic. (Round your answer to two decimal places.)

(c) Find (or estimate) the P-value. (Round your answer to four decimal places.)

Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.01 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) State your conclusion in the context of the application.

There is sufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.There is insufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.

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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