Statistical Techniques in Business and Economics
Statistical Techniques in Business and Economics
16th Edition
ISBN: 9780077639723
Author: Lind
Publisher: Mcgraw-Hill Course Content Delivery
bartleby

Videos

Textbook Question
Book Icon
Chapter 12, Problem 1SR

Steele Electric Products Inc. assembles cell phones. For the last 10 days, Mark Nagy completed a mean of 39 phones per day, with a standard deviation of 2 per day. Debbie Richmond completed a mean of 38.5 phones per day, with a standard deviation of 1.5 per day. At the .05 significance level, can we conclude that there is more variation in Mark’s daily production?

Expert Solution & Answer
Check Mark
To determine

Find whether there is more variation in Person M’s daily production.

Answer to Problem 1SR

There is no more variation in Person M’s daily production.

Explanation of Solution

Here, σ12 represents the variation in Person M’s daily production and σ22 represents the variation in Person R’s daily production.

The null and alternative hypotheses are stated below:

H0:σ12σ22

That is, the variation in Person M’s daily production is less than or equal to the variation in Person R’s production.

H1:σ12>σ22

That is, the variation in Person M’s daily production is more than that of Person R’s production.

Step-by-step procedure to obtain the test statistic using MINITAB software:

  • Choose Stat > Basic Statistics > 2 Variance.
  • Under Data, choose Sample standard deviation.
  • In First, enter 10 under Sample size.
  • In First, enter 2 under Standard deviation
  • In Second, enter 10 under Sample size.
  • In Second, enter 1.5 under Standard deviation
  • Check Options, enter Confidence level as 95.0.
  • In Hypothesized ratio StDev 1 / StDev 2
  • Choose greater than in alternative.
  • Click OK in all dialog boxes.
  • Output obtained using MINITAB is represented as follows:

Statistical Techniques in Business and Economics, Chapter 12, Problem 1SR

  • From the above output, the F test statistic value is 1.78 and the p-value is 0.202.

Decision Rule:

If the p-value is less than the level of significance, reject the null hypothesis. Otherwise, fail to reject the null hypothesis.

Conclusion:

The level of significance is 0.05.

From the output, the p-value is 0.202.

The p-value is greater than the level of significance 0.05. Hence, one is failed to reject the null hypothesis at the 0.05 significance level.

Therefore, there is no more variation in Person M’s daily production.

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!
Students have asked these similar questions
Business discuss
Business discuss
I just need to know why this is wrong below: What is the test statistic W? W=5 (incorrect) and  What is the p-value of this test? (p-value < 0.001-- incorrect)   Use the Wilcoxon signed rank test to test the hypothesis that the median number of pages in the statistics books in the library from which the sample was taken is 400. A sample of 12 statistics books have the following numbers of pages pages 127 217 486 132 397 297 396 327 292 256 358 272 What is the sum of the negative ranks (W-)? 75 What is the sum of the positive ranks (W+)? 5What type of test is this?     two tailedWhat is the test statistic W? 5 These are the critical values for a 1-tailed Wilcoxon Signed Rank test for n=12 Alpha Level 0.001 0.005 0.01 0.025 0.05 0.1 0.2 Critical Value 75 70 68 64 60 56 50 What is the p-value for this test?         p-value < 0.001

Chapter 12 Solutions

Statistical Techniques in Business and Economics

Ch. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 3SRCh. 12 - Prob. 11ECh. 12 - The following are six observations collected from...Ch. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 4SRCh. 12 - Prob. 15ECh. 12 - For exercises 15 and 16, conduct a test of...Ch. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 5SRCh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 23CECh. 12 - Prob. 24CECh. 12 - Prob. 25CECh. 12 - Prob. 26CECh. 12 - In an ANOVA table, the MSE is equal to 10. Random...Ch. 12 - Prob. 28CECh. 12 - Prob. 29CECh. 12 - Prob. 30CECh. 12 - Prob. 31CECh. 12 - Prob. 32CECh. 12 - Prob. 33CECh. 12 - Prob. 34CECh. 12 - Prob. 35CECh. 12 - Prob. 36CECh. 12 - Prob. 37CECh. 12 - Prob. 38CECh. 12 - Shanks Inc., a nationwide advertising firm, wants...Ch. 12 - Prob. 40CECh. 12 - Prob. 41CECh. 12 - Prob. 42CECh. 12 - Prob. 43CECh. 12 - Prob. 44CECh. 12 - Prob. 45CECh. 12 - Prob. 46CECh. 12 - Prob. 47CECh. 12 - Prob. 48CECh. 12 - Prob. 49DECh. 12 - Prob. 50DECh. 12 - Prob. 51DECh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 1CCh. 12 - Prob. 2CCh. 12 - Prob. 1.1PTCh. 12 - The likelihood of rejecting a true null hypothesis...Ch. 12 - Prob. 1.3PTCh. 12 - Prob. 1.4PTCh. 12 - Prob. 1.5PTCh. 12 - Prob. 1.6PTCh. 12 - In a two-tailed test, the rejection region is...Ch. 12 - Prob. 1.8PTCh. 12 - Prob. 1.9PTCh. 12 - Prob. 1.10PTCh. 12 - Prob. 2.1PTCh. 12 - Prob. 2.2PTCh. 12 - Prob. 2.3PT
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.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Hypothesis Testing using Confidence Interval Approach; Author: BUM2413 Applied Statistics UMP;https://www.youtube.com/watch?v=Hq1l3e9pLyY;License: Standard YouTube License, CC-BY
Hypothesis Testing - Difference of Two Means - Student's -Distribution & Normal Distribution; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=UcZwyzwWU7o;License: Standard Youtube License