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A random sample of 51 observations was selected from a normally distributed population. The sample mean was \(\bar{x}=98.2,\) and the sample variance was \(s^{2}=37.5 .\) Does this sample show sufficient reason to conclude that the population standard deviation is not equal to 8 at the 0.05 level of significance? a. Solve using the \(p\) -value approach. b. Solve using the classical approach.

Short Answer

Expert verified
No, there's not enough evidence to conclude that the population standard deviation is not equal to 8 at the 0.05 level of significance, based on the sample.

Step by step solution

01

State the hypotheses

For this test, the null hypothesis \(H_{0}\) is that the population standard deviation is equal to 8, \(\sigma = 8\), and the alternative hypothesis \(H_{1}\) is that the population standard deviation is not equal to 8, \(\sigma \neq 8\).
02

Calculate the Test Statistic

The Chi-square test statistic (χ²) is calculated using the formula: \[ \chi^{2} = \frac{(n-1)s^{2}}{\sigma^{2}} \], where \( n = 51 \) is the sample size, \( s^{2} = 37.5 \) is the sample variance, and \( \sigma^{2} = 8^{2} \) is the assumed population variance. Plug these values into the formula: \[ \chi^{2} = \frac{(51-1)37.5}{64} = 29.0625.\]
03

Find the P-value

You can find the p-value using a Chi-square distribution table or a calculator. For \(\chi^{2} = 29.0625\) with \( \nu = n - 1 = 50 \) degrees of freedom, the two-tailed p-value is 0.1078.
04

Make a decision based on p-value

Since the p-value (0.1078) is greater than the significance level of 0.05, do not reject the null hypothesis.
05

Classical Approach

For the classical approach, find the critical Chi-square values for a 0.05 level of significance and \( \nu = 50 \) degrees of freedom. From the Chi-Square table, the values are \( \chi_{L}^{2} = 32.36 \) and \( \chi_{H}^{2} = 71.42 \). Since the calculated test statistic (29.0625) is not in the rejection region (i.e., it's less than \( \chi_{L}^{2} \) and greater than \( \chi_{H}^{2} \)), do not reject the null hypothesis.
06

Make a conclusion

Having not rejected the null hypothesis, conclude that there is insufficient evidence to suggest that the population standard deviation of is not equal to 8 at the 0.05 level of significance.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Chi-square Test
The Chi-square test is a statistical method used to examine the differences between observed and expected data, or to test hypotheses about a population's variance or standard deviation. In our exercise, the test is specifically used to decide if a population's standard deviation differs from a specific value, which is 8 in this case.

To perform this test, you calculate the Chi-square statistic using the formula: \[ \chi^{2} = \frac{(n-1)s^{2}}{\sigma^{2}}, \] where: - \(n\) is the sample size,- \(s^{2}\) is the sample variance, and - \( \sigma^{2} \) is the assumed population variance.

For this exercise, the sample size is 51, the sample variance is 37.5, and the assumed population variance is 64 (since \( \sigma = 8 \)). We plug these into the formula to compute \( \chi^{2} = 29.0625 \). This test statistic is then compared against the critical values or used to find the p-value to make a decision about the null hypothesis.
Population Standard Deviation
The population standard deviation is a measure of how spread out numbers in a data set are. It provides insight into the variability within a population. In hypothesis testing, determining if the population standard deviation is different from a specified value can be crucial.

In the given scenario, the null hypothesis suggests that the population standard deviation is 8. If the hypothesis is true, the value describes how much variation from the mean exists within the population values.

Understanding the population standard deviation within the context of hypothesis testing involves:
  • Identifying the null hypothesis, often denoted as \( H_{0} \), which states the population standard deviation equals a known value (in this case, 8).
  • Considering the alternative hypothesis, \( H_{1} \), which posits that it is not equal to that specific value.
The exercise involved testing this through a sample variance and applying the Chi-square test to determine if the presumed population standard deviation holds true.
p-value Approach
The p-value approach in hypothesis testing helps to make a decision to reject or not reject the null hypothesis by examining the probability that the observed data would occur under the null hypothesis.

For the current problem, after calculating the Chi-square statistic, the next step is to find the p-value. The p-value is the probability of obtaining a test statistic as extreme as, or more extreme than, the observed value when the null hypothesis is true.

With \(\chi^{2} = 29.0625\) and 50 degrees of freedom, the two-tailed p-value is 0.1078. This means there's a 10.78% chance of observing such an extreme test statistic if the null hypothesis holds. Since the p-value (0.1078) is greater than the significance level \( \alpha = 0.05 \), we do not reject the null hypothesis. Using the p-value approach:
  • Calculate the test statistic.
  • Determine the p-value corresponding to this statistic.
  • Compare the p-value with the significance level to make a decision.
    • The decision hinges on whether the p-value is less than or greater than the significance level.
Classical Approach
The classical approach to hypothesis testing involves comparing the test statistic to critical values that define the boundary of acceptance or rejection of the null hypothesis.

In the given problem, using the classical approach means determining critical Chi-square values for the chosen significance level \( \alpha = 0.05 \) and the degrees of freedom. For 50 degrees of freedom, the critical Chi-square values are \( \chi_{L}^{2} = 32.36 \) and \( \chi_{H}^{2} = 71.42 \).

Here's how it works:
  • Calculate the Chi-square test statistic, which is 29.0625 here.
  • Locate the critical values in the Chi-square distribution table.
  • Compare the test statistic to see if it lies within the rejection zone (less than \(\chi_{L}^{2}\) or more than \(\chi_{H}^{2}\)).
For our exercise, because 29.0625 does not fall in the critical or rejection regions, we do not reject the null hypothesis.
This indicates there is not enough statistical evidence to suggest the population standard deviation is different from 8 at the 0.05 significance level. This approach provides a clear cut-off based decision-making framework.

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Most popular questions from this chapter

Today's newspapers and magazines often report the findings of survey polls about various aspects of life. The Pew Internet \& American Life Project (January 13-February 9,2005 ) found that "63\% of cell phone users ages \(18-27\) have used text messaging within the past month." Other information obtained from the project included "random telephone survey of 1,460 cell phone users" and "has a margin of sampling error of plus or minus 3 percentage points." Relate this information to the statistical inferences you have been studying in this chapter. a. Is a percentage of people a population parameter, and if so, how is it related to any of the parameters that we have studied? b. Based on the information given, find the \(95 \%\) confidence interval for the true proportion of cell phone users who have used text messaging. c. Explain how the terms "point estimate," "level of confidence," "maximum error of estimate," and "confidence interval" relate to the values reported in the article and to your answers in part b.

In a sample of 60 randomly selected students, only 22 favored the amount budgeted for next year's intramural and interscholastic sports. Construct the \(99 \%\) confidence interval for the proportion of all students who support the proposed budget amount.

One of the objectives of a large medical study was to estimate the mean physician fee for cataract removal. For 25 randomly selected cases, the mean fee was found to be \(3550\)dollar with a standard deviation of \(275\)dollar. Set a \(99 \%\) confidence interval on \(\mu,\) the mean fee for all physicians. Assume fees are normally distributed.

Of the 150 elements in a random sample, 45 are classified as "success." a. Explain why \(x\) and \(n\) are assigned the values 45 and \(150,\) respectively. b. Determine the value of \(p^{\prime} .\) Explain how \(p^{\prime}\) is found and the meaning of \(p^{\prime}\). For each of the following situations, find \(p^{\prime}\). c. \(x=24\) and \(n=250\) d. \(x=640\) and \(n=2050\) e. \(892\) of 1280 responded "Yes"

The chief executive officer (CEO) of a small business wishes to hire your consulting firm to conduct a simple random sample of its customers. She wants to determine the proportion of her customers who consider her company the primary source of their products. She requests the margin of error in the proportion be no more than \(3 \%\) with \(95 \%\) confidence. Earlier studies have indicated that the approximate proportion is \(37 \%\). a. What is the minimum size of the sample that you would recommend to meet the requirements of your client if you use the earlier results? b. What is the minimum size of the sample that you would recommend to meet the requirements of your client if you ignore the earlier results? c. Is the approximate proportion of value needed in conducting the survey? Explain.

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