Essentials Of Statistics For Business & Economics
Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Chapter 9.3, Problem 14E

a.

To determine

Find the p-value for x¯=23 and state the conclusion.

a.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.3844.

The conclusion is “do not reject the null hypothesis”.

Explanation of Solution

Calculation:

It is given that the sample size is n=75, the sample mean is x¯=23, and the population standard deviation is σ=10.

The hypotheses are given below:

Null hypothesis: H0:μ=22

Alternative hypothesis: Ha:μ22

Test statistic:

The formula for finding test statistic is as follows:

z=x¯μ0σn

Here, x¯ represents the sample mean, μ0 represents the hypothesized value of the population mean, σ represents the population standard deviation, and n represents the sample size.

Substitute 23 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=23221075=1108.6602=11.1547=0.87

Thus, the value of the test statistic is 0.87.

For p-value:

In this case, z is greater than 0. Therefore, the p-value is two times the upper tail area.

That is,

p-value=2(Upper tail area)=2(1Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value 0.8 in the first column.
  • Locate the value 0.07 in the first row.
  • The intersecting value that corresponds to 0.87 is 0.8078.

p-value=2(10.8078)=2(0.1922)=0.3844

Thus, the p-value is 0.3844.

Rejection rule:

If p-valueα, reject the null hypothesis

If p-value>α, do not reject the null hypothesis.

Conclusion:

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

That is, p-value(=0.3844)>α(=0.01).

By the rejection rule, the null hypothesis is not rejected.

b.

To determine

Find the p-value for x¯=25.1 and state the conclusion.

b.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.0074.

The conclusion is “reject the null hypothesis”.

Explanation of Solution

Calculation:

Test statistic:

Substitute 25.1 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=25.1221075=3.1108.6602=3.11.1547=2.68

Thus, the value of the test statistic is 2.68.

For p-value:

In this case, z is greater than 0. Therefore, the p-value is two times the upper tail area.

That is,

p-value=2(Upper tail area)=2(1Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value 2.6 in the first column.
  • Locate the value 0.08 in the first row.
  • The intersecting value that corresponds to 2.68 is 0.9963.

p-value=2(10.9963)=2(0.0037)=0.0074

Thus, the p-value is 0.0074.

Conclusion:

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

That is, p-value(=0.0074)<α(=0.01).

By the rejection rule, the null hypothesis is rejected.

c.

To determine

Find the p-value for x¯=20 and state the conclusion.

c.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.083.

The conclusion is “do not reject the null hypothesis”.

Explanation of Solution

Calculation:

Test statistic:

Substitute 20 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=20221075=2108.6602=21.1547=1.73

Thus, the value of the test statistic is –1.73.

For p-value:

In this case, z is less than 0. Therefore, the p-value is two times the lower tail area.

That is,

p-value=2(Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value –1.7 in the first column.
  • Locate the value 0.03 in the first row.
  • The intersecting value that corresponds to–1.73 is 0.0418.

p-value=2(0.0418)=0.0836

Thus, the p-value is 0.0836.

Conclusion:

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

That is, p-value(=0.0836)>α(=0.01).

By the rejection rule, the null hypothesis is not rejected.

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Chapter 9 Solutions

Essentials Of Statistics For Business & Economics

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