Concept explainers
a.
Compute the P-value.
Check whether the null hypothesis H0 is not rejected at the α=0.05 level.
a.

Answer to Problem 72E
The P-value is 0.159.
The null hypothesis H0 is not rejected at the α=0.05 level.
Explanation of Solution
Calculation:
The given test hypotheses are:
Null hypothesis: H0:μ=20.
Alternate hypothesis: H1:μ>20.
It is given that the
Assumptions for performing a hypothesis test about μwhen σis known:
- The samples are taken from the population are simple random samples.
- The sample size should be large that is, n>30 or the population should be distributed according to normal.
Requirement check:
- The sample of 100 is assumed to be simple random samples.
- The sample size of 100 is greater than 30. That is, 100>30.
Denote μ as the population mean.
It is given that the level of significance α=0.05.
Test statistic:
The z-test statistic is:
z=ˉx−μσ√n,
Where, ˉx be the sample mean, μ be the hypothesized mean, σ be the standard deviation and n be the sample size.
Software procedure:
Step by step procedure to find the test statistic using the MINITAB software:
- Choose Stat > Basic Statistics > 1-Sample Z.
- In Summarized data select the Sample size as 100, Sample mean as 21.
- Select Known standard deviation as 10.
- Enter Hypothesized mean as 20.
- Select Options.
- Choose Mean>hypothesized mean in Alternate hypothesis.
- Click OK in all dialogue boxes.
The output using Minitab is given below:
From the MINITAB output, the P-value is 0.159.
Thus, the P-value is 0.159.
Decision based on the P-value method:
- If P−value≤α, reject H0.
- If P−value>α, fail to reject H0.
Conclusion:
The significance level is, α=0.05 and the P-value is 0.159.
Here, the P-value of 0.159 is greater than the significance level 0.05.
That is, P-value(=0.159)>α(=0.05).
Therefore, the null hypothesis is not rejected.
Hence, it is verified that the null hypothesis is not rejected.
b.
Compute the P-value.
Check whether the null hypothesis H0 is rejected at the α=0.05 level.
b.

Answer to Problem 72E
The P-value is 0.0008.
Yes, the null hypothesis H0 is rejected at the α=0.05 level.
Explanation of Solution
Calculation:
It is given that the sample size n=1,000,sample mean is ˉx=21 and the assumed standard deviation σ=10.
Assumptions for performing a hypothesis test about μwhen σis known:
- The samples are taken from the population are simple random samples.
- The sample size should be large that is, n>30 or the population should be distributed according to normal.
Requirement check:
- The sample of 1,000 is assumed to be simple random samples.
- The sample size of 1,000 is greater than 30. That is, 1,000>30.
Denote μ as the population mean.
It is given that the level of significance α=0.05.
Test statistic:
Software procedure:
Step by step procedure to find the test statistic using the MINITAB software:
- Choose Stat > Basic Statistics > 1-Sample Z.
- In Summarized data select the Sample size as 1,000, Sample mean as 21.
- Select Known standard deviation as 10.
- Enter Hypothesized mean as 20.
- Select Options.
- Choose Mean>hypothesized mean in Alternate hypothesis.
- Click OK in all dialogue boxes.
The output using Minitab is given below:
From the MINITAB output, the P-value is 0.0008.
Thus, the P-value is 0.0008.
Conclusion:
The significance level is, α=0.05 and the P-value is 0.0008.
Here, the P-value of 0.0008 is less than the significance level 0.05.
That is, P-value(=0.0008)<α(=0.05).
Therefore, the null hypothesis is rejected.
Hence, it has verified that the null hypothesis is rejected.
c.
Explain whether the result is likely to be of practical significance.
c.

Answer to Problem 72E
No, the result may not be of practical significance.
Explanation of Solution
Interpretation:
Practical significance:
The practical significance means the real life applicability of a characteristic under study.
It is often observed that even if the tested mean is significant, in common sense or practically, it may not have enough significanceto be considered as practically significant. That is, it suggests that the difference may not be sufficiently large to be considered of practical significance, even if it is statistically significant.
Here, the test of hypothesis gives statistically significant results. The hypothesized mean valueis 20. In 100 sampled individuals,themean is found assignificantlygreater than20.
However, this is not necessarily a great increase for practical purposes. In other words, meangreater than20 is not useful, unless μ>25. There is no evidence to believe the population mean μ is greater than 25 from this test.
Hence, the result may not be of practical significance.
d.
Explain the reason the larger sample can be more likely to produce statistically significant results that are not a practical significance.
d.

Explanation of Solution
Increasing in the sample size increases the power of a statistical test. Now, power is the probability of Type II error subtracted from 1. Thus, a larger power suggests smaller probability of Type II error. Again, decreasing the Type II error increases the probability of Type I error, leading to a greater chance of rejecting the null hypothesis when it is true.
As a result, the increase in the sample size increases the chance of rejecting the null hypothesis when it is true. This produces a statistically significant result for larger sample sizes.
Hence, the larger sample can be more likely to produce statistically significant results that are not a practical significance.
Want to see more full solutions like this?
Chapter 8 Solutions
ALEKS 360 ESSENT. STAT ACCESS CARD
- 1. If a firm spends more on advertising, is it likely to increase sales? Data on annual sales (in $100,000s) and advertising expenditures (in $10,000s) were collected for 20 firms in order to estimate the model Sales = Po + B₁Advertising + ε. A portion of the regression results is shown in the accompanying table. Intercept Advertising Standard Coefficients Error t Stat p-value -7.42 1.46 -5.09 7.66E-05 0.42 0.05 8.70 7.26E-08 a. Interpret the estimated slope coefficient. b. What is the sample regression equation? C. Predict the sales for a firm that spends $500,000 annually on advertising.arrow_forwardCan you help me solve problem 38 with steps im stuck.arrow_forwardHow do the samples hold up to the efficiency test? What percentages of the samples pass or fail the test? What would be the likelihood of having the following specific number of efficiency test failures in the next 300 processors tested? 1 failures, 5 failures, 10 failures and 20 failures.arrow_forward
- The battery temperatures are a major concern for us. Can you analyze and describe the sample data? What are the average and median temperatures? How much variability is there in the temperatures? Is there anything that stands out? Our engineers’ assumption is that the temperature data is normally distributed. If that is the case, what would be the likelihood that the Safety Zone temperature will exceed 5.15 degrees? What is the probability that the Safety Zone temperature will be less than 4.65 degrees? What is the actual percentage of samples that exceed 5.25 degrees or are less than 4.75 degrees? Is the manufacturing process producing units with stable Safety Zone temperatures? Can you check if there are any apparent changes in the temperature pattern? Are there any outliers? A closer look at the Z-scores should help you in this regard.arrow_forwardNeed help pleasearrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. 4. One-Way ANOVA: Analyze the customer satisfaction scores across four different product categories to determine if there is a significant difference in means. (Hints: The null can be about maintaining status-quo or no difference among groups) H0 = H1=arrow_forward
- Please conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points 2. Two-Sample T-Test: Compare the average sales revenue of two different regions to determine if there is a significant difference. (Hints: The null can be about maintaining status-quo or no difference among groups; if alternative hypothesis is non-directional use the two-tailed p-value from excel file to make a decision about rejecting or not rejecting null) H0 = H1=arrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points 3. Paired T-Test: A company implemented a training program to improve employee performance. To evaluate the effectiveness of the program, the company recorded the test scores of 25 employees before and after the training. Determine if the training program is effective in terms of scores of participants before and after the training. (Hints: The null can be about maintaining status-quo or no difference among groups; if alternative hypothesis is non-directional, use the two-tailed p-value from excel file to make a decision about rejecting or not rejecting the null) H0 = H1= Conclusion:arrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. The data for the following questions is provided in Microsoft Excel file on 4 separate sheets. Please conduct these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. 1. One Sample T-Test: Determine whether the average satisfaction rating of customers for a product is significantly different from a hypothetical mean of 75. (Hints: The null can be about maintaining status-quo or no difference; If your alternative hypothesis is non-directional (e.g., μ≠75), you should use the two-tailed p-value from excel file to…arrow_forward
- Please conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. 1. One Sample T-Test: Determine whether the average satisfaction rating of customers for a product is significantly different from a hypothetical mean of 75. (Hints: The null can be about maintaining status-quo or no difference; If your alternative hypothesis is non-directional (e.g., μ≠75), you should use the two-tailed p-value from excel file to make a decision about rejecting or not rejecting null. If alternative is directional (e.g., μ < 75), you should use the lower-tailed p-value. For alternative hypothesis μ > 75, you should use the upper-tailed p-value.) H0 = H1= Conclusion: The p value from one sample t-test is _______. Since the two-tailed p-value is _______ 2. Two-Sample T-Test:…arrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. What is one sample T-test? Give an example of business application of this test? What is Two-Sample T-Test. Give an example of business application of this test? .What is paired T-test. Give an example of business application of this test? What is one way ANOVA test. Give an example of business application of this test? 1. One Sample T-Test: Determine whether the average satisfaction rating of customers for a product is significantly different from a hypothetical mean of 75. (Hints: The null can be about maintaining status-quo or no difference; If your alternative hypothesis is non-directional (e.g., μ≠75), you should use the two-tailed p-value from excel file to make a decision about rejecting or not…arrow_forwardThe data for the following questions is provided in Microsoft Excel file on 4 separate sheets. Please conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. What is one sample T-test? Give an example of business application of this test? What is Two-Sample T-Test. Give an example of business application of this test? .What is paired T-test. Give an example of business application of this test? What is one way ANOVA test. Give an example of business application of this test? 1. One Sample T-Test: Determine whether the average satisfaction rating of customers for a product is significantly different from a hypothetical mean of 75. (Hints: The null can be about maintaining status-quo or no difference; If your alternative hypothesis is non-directional (e.g., μ≠75), you…arrow_forward
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage LearningStatistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
- Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSONThe Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. FreemanIntroduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman





