The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.9 auto accidents per day with a standard deviation of0.05. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to 0.05. Suppose that we want tocarry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis Ho and the alternative hypothesis H, that we would usefor this test.H: 0O

It is given that the population mean is μ=1.9. The population standard deviation is σ=0.05.

Answered: The records of a casualty insurance…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Zappos is an online retailer based in Nevada and employs 1,300 employees. One of their competitors, Amazon.com, would like to test the hypothesis that the average age of a Zappos employee is less than 36 years old. A random sample of 22 Zappos employees was found to have an average age of 33.9 years. The standard deviation for this sample was 4.1 years. Amazon would like to set α = 0.025. The correct hypothesis statement for this hypothesis test would be A) H0: μ = 33.9; H1: μ ≠ 33.9. B) H0: μ = 36; H1: μ ≠ 36. C) H0: μ ≤ 36; H1: μ > 36. D) H0: μ ≥ 36; H1: μ < 36.
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Under what circumstances is a t statistic used instead of a z-score for a hypothesis test? Justin wants to know whether a commonly prescribed drug does improve the attention span of students with attention deficit disorder (ADD). He knows that the mean attention span for students with ADD who are not taking the drug is 2.3 minutes long. His sample of 12 students taking the drug yielded a mean of 4.6 minutes. Justin can find no information regarding σx , so he calculated s2x =1.96. Determine the critical region using a one-tailed test with alpha = .05. Conduct the hypothesis test (Do the math and compare the t-critical and t-obtained values). State your conclusions in terms of H0 (Should you reject the H0 or fail to reject/accept the H0). Based on your analysis, is there a relationship between the drug and attention span?

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