APPLIED STAT.IN BUS.+ECONOMICS
APPLIED STAT.IN BUS.+ECONOMICS
6th Edition
ISBN: 9781259957598
Author: DOANE
Publisher: RENT MCG
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Chapter 10, Problem 41CE

a.

To determine

State the hypotheses and a decision rule for α=0.10.

a.

Expert Solution
Check Mark

Answer to Problem 41CE

Hypotheses:

Null hypothesis:

H0:πMenπWomen=0

Alternative hypothesis:

H1:πMenπWomen0

Decision rule:

  • If zcalc<1.645, then reject the null hypothesis.
  • If zcalc>+1.645, then reject the null hypothesis.

Explanation of Solution

Calculation:

The given information is that, 15 out of 25 men ranked fresh fruit in their top five snack choices and 22 out of 32 women ranked fresh fruit in their top five snack choices. That is, x1=15, n1=25, x2=22 and n2=32.

Here, the claim is that there is a difference in the proportion of men and women who rank fresh fruit in their top five list of snacks.

Here, the direction of the test is two-tailed.

State the hypotheses:

Null hypothesis:

H0:πMenπWomen=0

That is, there is no difference in the proportion of men and women who rank fresh fruit in their top five list of snacks.

Alternative hypothesis:

H1:πMenπWomen0

That is, there is a difference in the proportion of men and women who rank fresh fruit in their top five list of snacks.

Critical value:

Software procedure:

Step-by-step procedure to obtain the critical value using the MINITAB software:

  • Choose Graph > Probability Distribution Plot choose View Probability > OK.
  • From Distribution, choose ‘Normal’ distribution.
  • Enter the Mean as 0 and the Standard deviation as 1.
  • Click the Shaded Area tab.
  • Choose Probability Value and Both Tails for the region of the curve to shade.
  • Enter the Probability value as 0.10.
  • Click OK.

Output using the MINITAB software is given below:

APPLIED STAT.IN BUS.+ECONOMICS, Chapter 10, Problem 41CE , additional homework tip  1

From the MINITAB output, the critical value for two-tailed test is ±1.645.

Decision rule:

  • If zcalc<1.645, then reject the null hypothesis.
  • If zcalc>+1.645, then reject the null hypothesis.

b.

To determine

Find the sample proportions.

b.

Expert Solution
Check Mark

Answer to Problem 41CE

The sample proportion for men is 0.6 and the sample proportion for women is 0.6875.

Explanation of Solution

Calculation:

Sample proportion for men:

p1=x1n1=1525=0.6

Thus, the sample proportion for men is 0.6.

Sample proportion for women:

p2=x2n2=2232=0.6875

Thus, the sample proportion for women is 0.6875.

c.

To determine

Find the test statistic and its p-value.

State the conclusion.

c.

Expert Solution
Check Mark

Answer to Problem 41CE

The test statistic is –0.687.

The p-value is 0.492.

There is no significant difference in the proportion of men and women who rank fresh fruit in their top five list of snacks.

Explanation of Solution

Calculation:

Pooled proportion:

pc=x1+x2n1+n2=15+2225+32=3757=0.649

Thus, the pooled proportion is 0.649.

Test statistic:

zcalc=p1p2pc(1pc)[1n1+1n2]=0.60.68750.649(10.649)[125+132]=00.08750.649(0.351)[0.04+0.03125]=0.08750.2278(0.07125)=0.687

Thus, the test statistic is –0.687.

p-value:

Software procedure:

Step-by-step procedure to obtain the p-value using the MINITAB software:

  • Choose Graph > Probability Distribution Plot choose View Probability > OK.
  • From Distribution, choose ‘Normal’ distribution.
  • Enter the Mean as 0 and the Standard deviation as 1.
  • Click the Shaded Area tab.
  • Choose X Value and Both Tails for the region of the curve to shade.
  • Enter the X value as –0.687.
  • Click OK.

Output using the MINITAB software is given below:

APPLIED STAT.IN BUS.+ECONOMICS, Chapter 10, Problem 41CE , additional homework tip  2

From the MINITAB output, the p-value for two-tailed test is 2(0.2460)=0.492.

Decision rule:

If p-value<α, then reject the null hypothesis.

Otherwise, do not reject the null hypothesis.

Conclusion:

Here, the p-value is greater than the level of significance.

That is, p-value(=0.492)>α(=0.10).

Therefore, the null hypothesis is not rejected.

Hence, there is no significant difference in the proportion of men and women who rank fresh fruit in their top five list of snacks.

d.

To determine

Check whether the normality of p1p2 can be assumed or not.

d.

Expert Solution
Check Mark

Answer to Problem 41CE

The normality of p1p2 can be assumed.

Explanation of Solution

Calculation:

Rule for normality:

  • Rule 1: n1p110
  • Rule 2: n1(1p1)10
  • Rule 3: n2p210
  • Rule 4: n2(1p2)10

Check the rule:

Rule 1: n1p110

n1p1=25(0.6)=15(>10)

Rule 2: n1(1p1)10

n1(1p1)=25(10.6)=10(=10)

Rule 3: n2p210

n2p2=32(0.6875)=22(>10)

Rule 4: n2(1p2)10

n2(1p2)=32(10.6875)=10(=10)

Since n1p1>10, n1(1p1)10, n2p2>10 and n2(1p2)10, the normality of the sample proportion can be assumed.

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Chapter 10 Solutions

APPLIED STAT.IN BUS.+ECONOMICS

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