Statistical Techniques in Business and Economics
Statistical Techniques in Business and Economics
18th Edition
ISBN: 9781260579611
Author: Douglas Lind; William Marchal; Samuel Wathen
Publisher: MCGRAW-HILL HIGHER EDUCATION
bartleby

Videos

Question
Book Icon
Chapter 16, Problem 1SR

a.

To determine

State whether the test is one-tailed or two-tailed test of hypothesis.

a.

Expert Solution
Check Mark

Answer to Problem 1SR

Two-tailed test.

Explanation of Solution

In this context, it is known that the sample size is 12 and significance level is 0.10.

The test hypothesis is given as follows:

Denote π as the proportion of successes.

Null hypothesis:

H0:π=0.5

That is, the proportion of successes is 0.5.

Alternative hypothesis:

H1:π>0.5

That is, the proportion of successes is greater than 0.5.

For sign test, the test statistic follows binomial distribution. In this context, It is appropriate to use binomial distribution. Because, the sign test satisfies all the binomial assumptions.

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

b.

To determine

State the decision rule.

b.

Expert Solution
Check Mark

Explanation of Solution

However, the test is two-tailed. The significance level for one-tail of the curve is 0.05.

For the significance level of 0.05, the cumulative probability should fall nearest to the level of significance, but it should not be greater than the level of significance.

In Appendix A, Table B.1 Binomial Probability Distribution, at 0.05, n=12, the cumulative probability for the observation ≤ 2  is nearest to 0.05 (=0.000+0.003+0.016) and the sum of cumulative probability for the observation ≥ 10 is next nearest to 0.05(=0.016+0.003+0.000).

Decision rule:

  • If the number of successes in the samples is ≤ 2  or ≥ 10, than reject H0.
  • Otherwise, fail to reject H0.

c.

To determine

State the decision that has been made regarding the null hypothesis.

c.

Expert Solution
Check Mark

Answer to Problem 1SR

The null hypothesis is rejected.

Explanation of Solution

For sign test, the test statistic follows binomial distribution. In this context, It is appropriate to use binomial distribution. Because, the sign test satisfies all the binomial assumptions.

It is given that the number of customers who preferred coffee is 2 (number of success).

Conclusion:

Here, the number of success is equal to  2.

By the rejection rule, reject the null hypothesis.

Thus, there is a preference for a decaffeinated coffee.

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
A quality characteristic of a product is normally distributed with mean μ and standard deviation σ = 1. Speci- fications on the characteristic are 6≤x≤8. A unit that falls within specifications on this quality characteristic results in a profit of Co. However, if x 8, the profit is -C2. Find the value ofμ that maximizes the expected profit.
A) The output voltage of a power supply is normally distributed with mean 5 V and standard deviation 0.02 V. If the lower and upper specifications for voltage are 4.95 V and 5.05 V, respectively, what is the probability that a power supply selected at random conform to the specifications on voltage? B) Continuation of A. Reconsider the power supply manufacturing process in A. Suppose We wanted to improve the process. Can shifting the mean reduce the number of nonconforming units produced? How much would the process variability need to be reduced in order to have all but one out of 1000 units conform to the specifications?
der to complete the Case X T Civil Service Numerical Test Sec X T Casework Skills Practice Test Maseline Vaseline x + euauthoring.panpowered.com/DeliveryWeb/Civil Service Main/84589a48-6934-4b6e-a6e1-a5d75f559df9?transferToken-News NGSSON The table below shows the best price available for various items from 4 uniform suppliers. The prices do not include VAT (charged at 20%). Item Waterproof boots A1-Uniforms (£)Best Trade (£)Clothing Tech (£)Dress Right (£) 59.99 39.99 59.99 49.99 Trousers 9.89 9.98 9.99 11.99 Shirts 14.99 15.99 16.99 12.99 Hi-Vis vest 4.49 4.50 4.00 4.00 20.00 25.00 19.50 19.99 Hard hats A company needs to buy a set of 12 uniforms which includes 1 of each item. If the special offers are included which supplier is cheapest? OOO A1-Uniforms Best Trade Clothing Tech Q Search + ** 109 8 CO* F10 Home F11 F12 6
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
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
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
Text book image
College Algebra
Algebra
ISBN:9781938168383
Author:Jay Abramson
Publisher:OpenStax
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