The article “Predicting Profit Performance for Selecting Candidate International Construction Projects” (S. Han, D. Kim, and H. Kim, Journal of Construction Engineering and Management Science, 2007: 425–436) presents an analysis of the profit of inter- national construction projects. In a sample of 126 projects, the average profit margin (in percent) was 8.24 with a standard deviation of 16.33. A test is made of H0:μ≥10 versus H1:μ<10.Find the P-value. Do you believe that it is plausible that the mean profit margin is at least 10%, or are youconvinced that it is less than 10%? Explain your reasoning.

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Answered: The article “Predicting Profit…

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The article “Predicting Profit Performance for Selecting Candidate International Construction Projects” (S. Han, D. Kim, and H. Kim, Journal of Construction Engineering and Management Science, 2007: 425–436) presents an analysis of the profit of inter- national construction projects. In a sample of 126 projects, the average profit margin (in percent) was 8.24 with a standard deviation of 16.33. A test is made of H0:μ≥10 versus H1:μ<10.
1. Find the P-value.  
2. Do you believe that it is plausible that the mean profit margin is at least 10%, or are you
  
  convinced that it is less than 10%? Explain your reasoning.

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