The new management at a bakery claims that workers are now more productive than they were under old management, which is why wages have “generally increased." Let W be Worker i's wage under the old management and let W be Worker i's wage after the change. The difference is D, = W – W. Assume that the D, are a random sample from a Normal (µ, o²) distribution. |(i) Using the following data on 15 workers, construct an exact 95% confidence interval for u. (ii) Formally state the null hypothesis that there has been no change in average wages. In particular, what is E(D,) under H,? If you are hired to examine the validity of the new management's claim, what is the relevant alternative hypothesis in terms of µ = E(D,)? |(iii) Test the null hypothesis from part (ii) against the stated alternative at the 5% and 1% levels. |(iv) Obtain the p-value for the test in part (iii). Worker Wage Before Wage After 8.30 9.25 9.40 9.00 3 9.00 9.25 10.50 10.00 5 11.40 12.00 8.75 9.50 10.00 10.25 9.50 9.50 10.80 11.50 10 12.55 13.10 11 12.00 11.50 12 8.65 9.00 13 7.75 7.75 14 11.25 11.50 15 12.65 13.00

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Chapter1: Starting With Matlab
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The new management at a bakery claims that workers are now more productive than they were under
old management, which is why wages have “generally increased." Let W be Worker i's wage under
the old management and let W be Worker i's wage after the change. The difference is D, = W – W.
Assume that the D, are a random sample from a Normal (µ, o²) distribution.
|(i) Using the following data on 15 workers, construct an exact 95% confidence interval for u.
(ii) Formally state the null hypothesis that there has been no change in average wages. In particular,
what is E(D,) under H,? If you are hired to examine the validity of the new management's claim,
what is the relevant alternative hypothesis in terms of µ = E(D,)?
|(iii) Test the null hypothesis from part (ii) against the stated alternative at the 5% and 1% levels.
|(iv) Obtain the p-value for the test in part (iii).
Transcribed Image Text:The new management at a bakery claims that workers are now more productive than they were under old management, which is why wages have “generally increased." Let W be Worker i's wage under the old management and let W be Worker i's wage after the change. The difference is D, = W – W. Assume that the D, are a random sample from a Normal (µ, o²) distribution. |(i) Using the following data on 15 workers, construct an exact 95% confidence interval for u. (ii) Formally state the null hypothesis that there has been no change in average wages. In particular, what is E(D,) under H,? If you are hired to examine the validity of the new management's claim, what is the relevant alternative hypothesis in terms of µ = E(D,)? |(iii) Test the null hypothesis from part (ii) against the stated alternative at the 5% and 1% levels. |(iv) Obtain the p-value for the test in part (iii).
Worker
Wage Before
Wage After
8.30
9.25
9.40
9.00
3
9.00
9.25
10.50
10.00
5
11.40
12.00
8.75
9.50
10.00
10.25
9.50
9.50
10.80
11.50
10
12.55
13.10
11
12.00
11.50
12
8.65
9.00
13
7.75
7.75
14
11.25
11.50
15
12.65
13.00
Transcribed Image Text:Worker Wage Before Wage After 8.30 9.25 9.40 9.00 3 9.00 9.25 10.50 10.00 5 11.40 12.00 8.75 9.50 10.00 10.25 9.50 9.50 10.80 11.50 10 12.55 13.10 11 12.00 11.50 12 8.65 9.00 13 7.75 7.75 14 11.25 11.50 15 12.65 13.00
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