STATISTICAL TECHNIQUES FOR BUSINESS AND
STATISTICAL TECHNIQUES FOR BUSINESS AND
17th Edition
ISBN: 9781307261158
Author: Lind
Publisher: MCG/CREATE
Question
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Chapter 11, Problem 7E

a.

To determine

Determine the decision rule.

a.

Expert Solution
Check Mark

Explanation of Solution

Calculation:

Degrees of freedom:

The degrees of freedom is as follows:

df=n1+n22=10+82=16

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

  1. 1. Choose Graph > Probability Distribution Plot choose View Probability > OK.
  2. 2. From Distribution, choose ‘t’ distribution.
  3. 3. In Degrees of freedom, enter 16.
  4. 4. Click the Shaded Area tab.
  5. 5. Choose the P Value and Two Tail for the region of the curve to shade.
  6. 6. Enter the probability value as 0.05.
  7. 7. Click OK.

Output obtained using MINITAB software is given below:

STATISTICAL TECHNIQUES FOR BUSINESS AND, Chapter 11, Problem 7E , additional homework tip  1

From the MINITAB output, the critical value is ±2.120.

The decision rule is,

If t <2.120, then reject the null hypothesis H0.

If t>2.120, then reject the null hypothesis H0.

b.

To determine

Find the value of the pooled estimate of the population variance.

b.

Expert Solution
Check Mark

Answer to Problem 7E

The pooled estimate of the population variance is 19.9375.

Explanation of Solution

Calculation:

Pooled estimate:

The pooled estimate of the population variance is as follows:

=(n11)s12+(n21)s22n1+n22

Substitute s1 as 4, s2 as 5, n1 as 10, and n2 as 8 in the above formula as follows:

sp2=(101)(4)2+(81)(5)210+82=(9)(16)+(7)(25)16=31916=19.9375

Thus, the pooled estimate of the population variance is 19.9375.

c.

To determine

Find the value of test statistic.

c.

Expert Solution
Check Mark

Answer to Problem 7E

The value of the test statistic is –1.416.

Explanation of Solution

Test statistic:

The test statistic for the hypothesis test of μ1μ2 when σ1 and σ2 are unknown is given below:

t=(x¯1x¯2)sp2(1n1+1n2)

Substitute x¯1 as 23, x¯2 as 26, sp2 as 19.9375, n1 as 10, and n2 as 8 in the above formula as follows:

t=232619.9375(110+18)=34.4859=32.1180=1.416

Thus, the test statistic is –1.416.

d.

To determine

Determine the decision regarding H0.

d.

Expert Solution
Check Mark

Answer to Problem 7E

The decision is fail to reject the null hypothesis.

Explanation of Solution

Decision:

The critical value is –2.120 and the value of test statistic is –1.416.

The value of the test statistic is greater than the critical value.

That is, Test statistic(1.416)>Criticalvalue(2.120).

From the decision rule, fail to reject the null hypothesis.

e.

To determine

Find the p-value.

e.

Expert Solution
Check Mark

Answer to Problem 7E

The p-value is 0.175.

Explanation of Solution

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

  1. 1. Choose Graph > Probability Distribution Plot choose View Probability > OK.
  2. 2. From Distribution, choose ‘t’ distribution.
  3. 3. In Degrees of freedom, enter 16.
  4. 4. Click the Shaded Area tab.
  5. 5. Choose X Value and Two Tail for the region of the curve to shade.
  6. 6. Enter the X value as –1.416.
  7. 7. Click OK.

Output obtained using MINITAB software is given below:

STATISTICAL TECHNIQUES FOR BUSINESS AND, Chapter 11, Problem 7E , additional homework tip  2

From the MINITAB output, the p-value for one side is 0.08797.

p-value=2(0.08797)=0.175

Thus, the p-value is 0.175.

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Chapter 11 Solutions

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