APPLIED STAT.IN BUS.+ECONOMICS
APPLIED STAT.IN BUS.+ECONOMICS
6th Edition
ISBN: 9781259957598
Author: DOANE
Publisher: RENT MCG
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 10, Problem 46CE

a.

To determine

State the hypotheses.

Find the test statistic and p-value.

Interpret the results.

a.

Expert Solution
Check Mark

Answer to Problem 46CE

Hypotheses:

H0:μ1μ20

H1:μ1μ2>0

The test statistic is 0.484.

The p-value is 0.3142.

There is no evidence to infer that the first group is better than the second group.

Explanation of Solution

Calculation:

In a sample of first 25 papers, 10 received a B or better and in a sample of last 24 papers, 8 received a B or better.

Here, the claim is that first group is better than second group.

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

Assume π1 is the population proportion of first group and π2 is the population proportion of second group.

State the hypotheses:

Null hypothesis:

H0:π1π20_ .

That is,the population proportion of first group is not greater than the population proportion of second group.

Alternative hypothesis:

H1:π1π2>0_.

That is, the population proportion of first group is greater than the population proportion of second group.

Sketch the decision rule:

Software procedure:

Step-by-step software procedure to obtain critical value using Megastat is as follows:

  • • In EXCEL, Select Add-Ins>MegaStat>Probability.
  • • Choose Continuous probability distributions.
  • • Select Normal distribution and select calculate z given P and enter P as 0.10.
  • • Enter mean as 0 and standard deviation as 1.
  • • In shading, selectUpper-tail.
  • • Click Ok.
  • Output using Megastat software is given below:

APPLIED STAT.IN BUS.+ECONOMICS, Chapter 10, Problem 46CE , additional homework tip  1

From the output, the critical value is +1.28.

Decision rule:

If zcalc>+1.28, then reject the null hypothesis.

Sample proportion for first group:

p1=x1n1=1025=0.4

Thus, the sample proportion for first group is 0.4.

Sample proportion for second group:

p2=x2n2=824=0.3333

Thus, the sample proportion for second group is 0.3333.

Pooled proportion:

pc=x1+x2n1+n2=10+825+24=1849=0.3673

Thus, the pooled proportion is 0.3673.

Test statistic:

zcalc=p1p2pc(1pc)[1n1+1n2]=0.40.33330.3673(10.3673)[125+124]=0.06670.3673(0.6327)[0.04+0.0417]=0.06670.2324(0.0817)=0.484

Thus, the test statistic is 0.484.

p-value:

Software procedure:

Step-by-step software procedure to obtain p-value using EXCEL is as follows:

  • • Open an EXCEL file.
  • • In cell A1, enter the formula “=NORM.S.DIST(0.484,1)”
  • Output using Excel software is given below:

APPLIED STAT.IN BUS.+ECONOMICS, Chapter 10, Problem 46CE , additional homework tip  2

From the output, the p-value for right tailed test is,

p-value=10.685807=0.3142

Thus, the p-value is 0.3142.

Decision rule:

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

Conclusion for p-value method:

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

That is, p-value(=0.3142)>α(=0.10).

Therefore, the null hypothesis is not rejected.

Thus, there is no evidence to infer that the first group is better than the second group.

b.

To determine

Check whether the samples are large enough to assume normality of p1p2.

b.

Expert Solution
Check Mark

Answer to Problem 46CE

No, the samples are not large enough to assume normality of p1p2.

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(0.4)=10(=10)

Rule 2: n1(1p1)10

n1(1p1)=25(10.4)=15(>10)

Rule 3: n2p210

n2p2=24(0.3333)=7.9992(<10)

Rule 4: n2(1p2)10

n2(1p2)=24(10.3333)=16.0008(>10)

Since n2p2 is not greater than 10, the normality of the sample proportion cannot be assumed.

c.

To determine

Make an argument that early-finishers should do better and then make the opposite argument.

Identify which is more convincing.

c.

Expert Solution
Check Mark

Explanation of Solution

Early-finishers should do better because they know the good study material and notes.Therefore, the student complete the exam faster.

The opposite argument is the students might not know about how to collect the study materials and notes. Also, the students do not know the method of study. Therefore, the student completes the exam faster.

Hence, the argument that early-finishers should do better is more convincing.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 10 Solutions

APPLIED STAT.IN BUS.+ECONOMICS

Ch. 10.3 - In trials of an experimental internet-based method...Ch. 10.3 - Construct a 95 percent confidence interval for the...Ch. 10.4 - (a) At = .05, does the following sample show that...Ch. 10.4 - An experimental surgical procedure is being...Ch. 10.4 - Blue Box is testing a new half price on Tuesday...Ch. 10.4 - The U.S. governments Cash for Clunkers program...Ch. 10.4 - Prob. 17SECh. 10.4 - Below is a random sample of shoe sizes for 12...Ch. 10.4 - A newly installed automatic gate system was being...Ch. 10.5 - Calculate the test statistic and p-value for a...Ch. 10.5 - Prob. 21SECh. 10.5 - Prob. 22SECh. 10.5 - Prob. 23SECh. 10.5 - Prob. 24SECh. 10.5 - Prob. 25SECh. 10.5 - A survey of 100 mayonnaise purchasers showed that...Ch. 10.5 - Prob. 27SECh. 10.5 - Prob. 28SECh. 10.5 - When tested for compliance with Sarbanes-Oxley...Ch. 10.5 - Prob. 30SECh. 10.5 - From a telephone log, an executive finds that 36...Ch. 10.5 - Prob. 32SECh. 10.6 - The American Bankers Association reported that, in...Ch. 10.6 - A study showed that 36 of 72 cell phone users with...Ch. 10.6 - Prob. 35SECh. 10.7 - Which samples show unequal variances? Use = .10...Ch. 10.7 - Prob. 37SECh. 10.7 - Prob. 38SECh. 10.7 - A manufacturing process drills holes in sheet...Ch. 10.7 - Examine the data below showing the weights (in...Ch. 10 - (a) Explain why two samples from the same...Ch. 10 - (a) In a two-sample test of proportions, what is a...Ch. 10 - List the three cases for a test comparing two...Ch. 10 - Consider Case 1 (known variances) in the test...Ch. 10 - Consider Case 2 (unknown but equal variances) in...Ch. 10 - Consider Case 3 (unknown and unequal variances) in...Ch. 10 - Why is it a good idea to use a computer program...Ch. 10 - (a) Explain why the paired t test for dependent...Ch. 10 - Explain how a difference in means could be...Ch. 10 - (a) Why do we use an F test? (b) When two...Ch. 10 - (a) In an F test for two variances, explain how to...Ch. 10 - Prob. 41CECh. 10 - In an early home game, an NBA team made 66 of...Ch. 10 - Prob. 43CECh. 10 - A recent study found that 202 women held board...Ch. 10 - A study of the Fortune 100 board of director...Ch. 10 - Prob. 46CECh. 10 - How many full-page advertisements are found in a...Ch. 10 - eShopNet, an online clothing retailer, is testing...Ch. 10 - After John F. Kennedy Jr. was killed in an...Ch. 10 - A ski company in Vail owns two ski shops, one on...Ch. 10 - At a University of Colorado womens home basketball...Ch. 10 - A ski resort tracks the proportion of seasonal...Ch. 10 - Does a follow-up reminder increase the renewal...Ch. 10 - A study revealed that the 30-day readmission rate...Ch. 10 - In a marketing class, 44 student members of...Ch. 10 - In San Francisco, a sample of 3,200 wireless...Ch. 10 - Prob. 57CECh. 10 - Prob. 58CECh. 10 - Prob. 59CECh. 10 - Prob. 60CECh. 10 - Prob. 61CECh. 10 - Prob. 62CECh. 10 - In a 15-day survey of air pollution in two...Ch. 10 - Prob. 64CECh. 10 - Do male and female school superintendents earn the...Ch. 10 - The average take-out order size for Ashoka Curry...Ch. 10 - Cash withdrawals from a college credit union for a...Ch. 10 - In Mini Case 10.2, we found that the mean methane...Ch. 10 - A ski company in Vail owns two ski shops, one on...Ch. 10 - A ski company in Vail owns two ski shops, one on...Ch. 10 - Emergency room arrivals in a large hospital showed...Ch. 10 - Concerned about graffiti, mayors of nine suburban...Ch. 10 - A certain company will purchase the house of any...Ch. 10 - Nine homes are chosen at random from real estate...Ch. 10 - Prob. 75CECh. 10 - Prob. 76CECh. 10 - Prob. 77CECh. 10 - Is there a difference between the variance in ages...Ch. 10 - A survey of 100 mayonnaise purchasers showed that...Ch. 10 - A 20-minute consumer survey mailed to 500 adults...Ch. 10 - One group of accounting students used simulation...Ch. 10 - Advertisers fear that users of DVRs (digital video...Ch. 10 - In preliminary tests of a vaccine that may help...Ch. 10 - Prob. 84CECh. 10 - Male and female students in a finance class were...Ch. 10 - Prob. 86CECh. 10 - A retailer compared the frequency of customer...Ch. 10 - Streeling University surveyed a random sample of...Ch. 10 - The Fischer Theatre compared attendance at its...Ch. 10 - Random samples of tires being replaced by a car...Ch. 10 - Count the number of two-door vehicles among 50...Ch. 10 - Which statement is not correct? Explain. a. The...Ch. 10 - Match each statement to the correct property of an...Ch. 10 - Concerning confidence intervals, which statement...Ch. 10 - Prob. 4ERQCh. 10 - Prob. 5ERQCh. 10 - Prob. 6ERQCh. 10 - Prob. 7ERQCh. 10 - Prob. 8ERQCh. 10 - The process that produces Sonora Bars (a type of...Ch. 10 - Prob. 10ERQCh. 10 - Prob. 11ERQCh. 10 - Last month, 85 percent of the visitors to the...Ch. 10 - Weights of 12 randomly chosen Sonora Bars (a type...Ch. 10 - In a random sample of 200 Colorado residents, 150...Ch. 10 - Five students in a large lecture class compared...Ch. 10 - Prob. 16ERQCh. 10 - Prob. 17ERQ
Knowledge Booster
Background pattern image
Statistics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Text book image
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Statistics 4.1 Point Estimators; Author: Dr. Jack L. Jackson II;https://www.youtube.com/watch?v=2MrI0J8XCEE;License: Standard YouTube License, CC-BY
Statistics 101: Point Estimators; Author: Brandon Foltz;https://www.youtube.com/watch?v=4v41z3HwLaM;License: Standard YouTube License, CC-BY
Central limit theorem; Author: 365 Data Science;https://www.youtube.com/watch?v=b5xQmk9veZ4;License: Standard YouTube License, CC-BY
Point Estimate Definition & Example; Author: Prof. Essa;https://www.youtube.com/watch?v=OTVwtvQmSn0;License: Standard Youtube License
Point Estimation; Author: Vamsidhar Ambatipudi;https://www.youtube.com/watch?v=flqhlM2bZWc;License: Standard Youtube License