/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 43 As mentioned in Exercise \(10.29... [FREE SOLUTION] | 91Ó°ÊÓ

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As mentioned in Exercise \(10.29\), a company claims that its medicine, Brand A, provides faster relief from pain than another company's medicine, Brand B. A researcher tested both brands of medicine on two groups of randomly selected patients. The results of the test are given in the following table. The mean and standard deviation of relief times are in minutes. \begin{tabular}{cccc} \hline Brand & Sample Size & Mean of Relief Times & Standard Deviation of Relief Times \\ \hline A & 25 & 44 & 11 \\ B & 22 & 49 & 9 \\ \hline \end{tabular} Assume that the two populations are normally distributed with unknown and unequal standard deviations. a. Construct a \(99 \%\) confidence interval for the difference between the mean relief times for the two brands of medicine. b. Test at a \(1 \%\) significance level whether the mean relief time for Brand \(A\) is less than that for Brand B c. Suppose that the sample standard deviations were \(13.3\) and \(7.2\) minutes, respectively. Redo parts a and b. Discuss any changes in the results.

Short Answer

Expert verified
The 99% confidence interval for the difference between means will be calculated applying the provided sample details in the formula. For hypothesis testing, if the calculated test statistic is less than the critical t-value, we can reject the null hypothesis. The process will be repeated with new standard deviation values providing increased insights into performance and significance levels of the two brands.

Step by step solution

01

Calculating Confidence Interval

To construct the 99% confidence interval for the difference between the mean relief times, apply the following formula: \[CI = (\bar{x}_1 - \bar{x}_2) \pm t_{\alpha/2}(s_1^2/n_1 + s_2^2/n_2)^{0.5}\] where \(\bar{x}_1\) and \(\bar{x}_2\) are sample means, \(n_1\) and \(n_2\) are sample sizes, \(s_1\) and \(s_2\) are sample standard deviations, and \(t_{\alpha/2}\) corresponds to the critical value for the desired level of confidence. In case of 99% confidence level, degrees of freedom will be \(n_1 + n_2 - 2 = 25 + 22 - 2 = 45\).
02

Hypothesis Testing

To test the claim at 1% significance level, perform a two-sample t-test. First, set up the null and alternative hypotheses. Let \(\mu_1\) and \(\mu_2\) represent the population means of Brand A and Brand B, respectively. The null hypothesis \(H_0\): \(\mu_1 - \mu_2 = 0\) (the mean relief times are equal), alternative hypothesis \(H_a\): \(\mu_1 - \mu_2 < 0\) (Brand A has less relief time than Brand B). Find the test statistic using: \[t = (\bar{x}_1 - \bar{x}_2) / (s_1^2/n_1 + s_2^2/n_2)^{0.5}\] and compare it to the critical t-value with 45 degrees of freedom and 1% significance level.
03

Additional Calculations

If the standard deviations were 13.3 for Brand A and 7.2 for Brand B, redo steps 1 and 2. The only things changing in the calculations are the values of \(s_1\) and \(s_2\) in the respective formulas. Compare these new results with previous ones and examine any changes and their potential implications.

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Key Concepts

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

Confidence Interval
A confidence interval gives us a range within which we expect the true difference between two population means to lie. In this exercise, we are dealing with the mean relief times of two brands of medicine. By using a 99% confidence interval, we are essentially saying that we are 99% confident that the true difference in mean relief times falls within this calculated range.
To calculate this, we use the formula:
  • \(CI = (\bar{x}_1 - \bar{x}_2) \pm t_{\alpha/2}(s_1^2/n_1 + s_2^2/n_2)^{0.5}\)
For calculating our confidence interval, we first need the sample means (\(\bar{x}_1, \bar{x}_2\)), the sample standard deviations (\(s_1, s_2\)), and the sample sizes (\(n_1, n_2\)). These values are substituted into the formula, and the result is our desired interval.
This interval helps us understand more about the variability in data and potential influences of sampling variation.
t-test
A t-test helps us test hypotheses concerning the difference between sample means. Here, it's used to determine if there's a significant difference in the mean relief times of two medicine brands. We begin by setting up our hypotheses.
The null hypothesis \(H_0\) suggests there's no difference in mean relief times: \(\mu_1 - \mu_2 = 0\). The alternative hypothesis \(H_a\) is \(\mu_1 - \mu_2 < 0\), indicating that Brand A might provide quicker relief than Brand B.
To compute the t-statistic, the formula is:
  • \(t = (\bar{x}_1 - \bar{x}_2) / (s_1^2/n_1 + s_2^2/n_2)^{0.5}\)
The t-statistic is then compared against a critical t-value at the 1% significance level, considering the degrees of freedom. This comparison helps decide whether to reject \(H_0\) or not, affecting our conclusions about the claim.
Sample Standard Deviation
Sample standard deviation is a measure of the amount of variation or dispersion in a sample data set. In this study, different sample standard deviations were given for Brands A and B, which affects our calculations.
With different values for \(s_1\) and \(s_2\), the results of confidence interval and hypothesis testing will change as they are key components in our formulas. A higher standard deviation suggests more variability among data points, while a lower one indicates less variability.
This metric is crucial in understanding how much the individual data points differ from the mean, influencing the reliability of our comparison between the two brands.
Significance Level
The significance level, often denoted by \(\alpha\), tells us how confident we need to be in our testing. In this exercise, a 1% significance level is used, meaning there's a 1% risk of concluding that a difference in means exists when, in fact, there isn't one.
This low \(\alpha\) level shows that the test aims to minimize the probability of a Type I error, crucially when making important decisions based on this test. It affects the critical t-value and thus plays a key role in hypothesis testing, determining the threshold to which our sample evidence is compared.
A smaller \(\alpha\) results in larger critical regions, requiring stronger evidence against the null hypothesis to reach a significant conclusion.

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Most popular questions from this chapter

The management at New Century Bank claims that the mean waiting time for all customers at its branches is less than that at the Public Bank, which is its main competitor. A business consulting firm took a sample of 200 customers from the New Century Bank and found that they waited an average of \(4.5\) minutes before being served. Another sample of 300 customers taken from the Public Bank showed that these customers waited an average of \(4.75\) minutes before being served. Assume that the standard deviations for the two populations are \(1.2\) and \(1.5\) minutes, respectively. a. Make a \(97 \%\) confidence interval for the difference between the population means. b. Test at a 2.5\% significance level whether the claim of the management of the New Century Bank is truc. c. Calculate the \(p\) -value for the test of part b. Based on this \(p\) -value, would you reject the null hypothesis if \(\alpha=01 ?\) What if \(\alpha=05\) ?

Describe the sampling distribution of \(\bar{x}_{1}-\bar{x}_{2}\) for two independent samples when \(\sigma_{1}\) and \(\sigma\), are known and either both sample sizes are large or both populations are normally distributed. What are the mean and standard deviation of this sampling distribution?

Maria and Ellen both specialize in throwing the javelin. Maria throws the javelin a mean distance of 200 feet with a standard deviation of 10 feet, whereas Ellen throws the javelin a mean distance of 210 feet with a standard deviation of 12 feet. Assume that the distances cach of these athletes throws the javelin are normally distributed with these population means and standard deviations. If Maria and Ellen each throw the javelin once, what is the probability that Maria's throw is longer than Ellen's?

According to a report in The New York Times, in the United States, accountants and auditors earn an average of \(\$ 70,130\) a year and loan officers carn \(\$ 67,960\) a year (Jessica Silver-Greenberg, The New York Times, April 22,2012 ). Suppose that these estimates are based on random samples of 1650 accountants and auditors and 1820 loan officers. Further assume that the sample standard deviations of the salaries of the two groups are \(\$ 14,400\) and \(\$ 13,600\), respectively, and the population standard deviations are equal for the two groups. a. Construct a \(98 \%\) confidence interval for the difference in the mean salaries of the two groupsaccountants and auditors, and loan officers. b. Using a \(1 \%\) significance level, can you conclude that the average salary of accountants and auditors is higher than that of loan officers?

Find the following confidence intervals for \(\mu_{d}\), assuming that the populations of paired differences are normally distributed. a. \(n=11, \quad \bar{d}=25.4, \quad s_{d}=13.5, \quad\) confidence level \(=99 \%\) b. \(n=23, \quad \bar{d}=13.2, \quad s_{d}=4.8, \quad\) confidence level \(=95 \%\) c. \(n=18, \quad \bar{d}=34.6, \quad s_{d}=11.7\), confidence level \(=90 \%\)

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