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Consider \(H_{0}: \mu=72\) versus \(H_{1}: \mu>72 . \Lambda\) random sample of 16 observations taken from this population produced a sample mean of \(75.2\). The population is normally distributed with \(\sigma=6\). a. Calculate the \(p\) -value. b. Considering the \(p\) -value of part a, would you reject the null hypothesis if the test were made at a significance level of \(.01\) ? c. Considering the \(p\) -value of part a, would you reject the null hypothesis if the test were made at a significance level of \(.025 ?\)

Short Answer

Expert verified
a. The p-value is approximately 0.0228. b. No, we would not reject the null hypothesis at the 1% significance level. c. Yes, we would reject the null hypothesis at the 2.5% significance level.

Step by step solution

01

Calculating Test Statistic

The test statistic (Z) is calculated using the formula: \(Z = \frac{{\bar{X} - \mu_0}}{{\sigma / \sqrt{n}}}\), where \(\bar{X}\) is the sample mean, \(\mu_0\) is the population mean under the null hypothesis, \(\sigma\) is the population standard deviation, and \(n\) is the sample size. Substituting the given values, \(Z = \frac{{75.2 - 72}}{{6 / \sqrt{16}}}\) results in \(Z = 2\).
02

Calculate the P-value

Next, we need to find the p-value associated with Z = 2, the standardized sample mean from Step 1. Since this is a right-tailed test (alternatively hypothesis \(H_{1}: \mu > 72\)), the p-value is the area to the right of Z in a standard normal distribution. Using a Z-table or statistical software, the associated p-value is approximately 0.0228.
03

Compares the P-value with a Significance Level of .01

If the p-value is less than the significance level ( \(\alpha\) ), we reject the null hypothesis. Here, 0.0228 > .01. Thus we do not have enough evidence to reject the null hypothesis at the 1% significance level.
04

Compare the P-value with a Significance Level of .025

Again, if the p-value is less than the significance level ( \(\alpha\) ), we reject the null hypothesis. In this case, 0.0228 < .025. Therefore, we reject the null hypothesis at the 2.5% significance level.

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Key Concepts

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

P-value Calculation
The p-value is an important concept in hypothesis testing, allowing us to understand whether the results of our test are statistically significant. It tells us how likely we are to observe a test statistic as extreme as the one calculated, assuming the null hypothesis is true. In this exercise, the test statistic (Z) was found to be 2. This means we need to find the probability of observing a Z value of 2 or more in a standard normal distribution.
The standard normal distribution is symmetrical and centered around zero. By using a Z-table or statistical software, we can find the area to the right of Z=2 which provides the p-value. In our case, the p-value was determined to be approximately 0.0228, indicating the probability of observing a sample mean as extreme as 75.2 when assuming the population mean is 72, given a standard deviation of 6 and sample size of 16.
Significance Level
The significance level, denoted as \(\alpha\), is a threshold set by the researcher. It determines the criteria for rejecting the null hypothesis. Common significance levels used in testing are 0.05, 0.01, and 0.10, but they can vary depending on the study. Essentially, if the p-value is less than or equal to the significance level, we reject the null hypothesis.
In our exercise, we tested two significance levels: 0.01 and 0.025. When the p-value of 0.0228 was compared to these levels, it was greater than 0.01, indicating insufficient evidence to reject the null hypothesis at this level. However, it was less than 0.025, allowing us to reject the null hypothesis with a significance level of 0.025, indicating a stronger assurance of a true effect.
Normal Distribution
Normal distribution is a cornerstone concept in statistics, providing the foundation for many statistical tests including the one in this exercise. It is characterized by a bell-shaped curve that is symmetric around the mean. The shape of the curve is determined by its mean (center) and standard deviation (spread).
In hypothesis testing, especially when the sample size is large, the distribution of the sample mean tends to be normally distributed as per the Central Limit Theorem, regardless of the distribution of the original data. In the given task, the population was stated to be normally distributed with a mean of 72 and a standard deviation of 6, allowing us to use the normal distribution accurately to calculate our p-value and test statistic.
Test Statistic
The test statistic is a standardized value that helps assess the null hypothesis by comparing the observed sample data against the expected distribution under the null hypothesis. For a normally distributed population, the Z-test is commonly used. The Z-test transforms the sample mean into a Z-score through the formula: \Z = \frac{{\bar{X} - \mu_0}}{{\sigma / \sqrt{n}}}\.
In our problem, with the sample mean \(\bar{X}\) being 75.2, the hypothesized population mean \(\mu_0\) as 72, standard deviation \(\sigma\) as 6, and sample size \(n\) as 16, the test statistic was computed to be \Z = 2\. This Z value indicates how many standard deviations the sample mean is away from the hypothesized population mean, guiding the decision on whether the null hypothesis can be rejected when compared against the p-value and significance levels.

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Most popular questions from this chapter

A study claims that \(65 \%\) of students at all colleges and universities hold off-campus (part-time or full-time) jobs. You want to check if the percentage of students at your school who hold off-campus jobs is different from \(65 \%\). Briefly explain how you would conduct such a test. Collect data from 40 students at your school on whether or not they hold off-campus jobs. Then, calculate the proportion of students in this sample who hold off-campus jobs. Using this information, test the hypothesis. Select your own significance level.

According to Moebs Services Inc., the average cost of an individual checking account to major U.S. banks was \(\$ 380\) in 2013 (www. moebs.com). A bank consultant wants to determine whether the current mean cost of such checking accounts at major U.S. banks is more than \(\$ 380\) a year, A recent random sample of 150 such checking accounts taken from major U.S. banks produced a mean annual cost to them of \(\$ 390\). Assume that the standard deviation of annual costs to major banks of all such checking accounts is \(\$ 60 .\) a. Find the \(p\) -value for this test of hypothesis. Based on this \(p\) -value, would you reject the null hypothesis if the maximum probability of Type I error is to be \(05 ?\) What if the maximum probability of Type I error is to be \(.01\) ? b. Test the hypothesis of part a using the critical-value approach and \(\alpha=.05\). Would you reject the null hypothesis? What if \(\alpha=.01 ?\) What if \(a=0\) ?

Explain when a sample is large enough to use the normal distribution to make a test of hypothesis about the population proportion.

A random sample of 18 observations produced a sample mean of \(9.24\). Find the critical and observed values of \(z\) for each of the following tests of hypothesis using \(\alpha=.05 .\) The population standard deviation is known to be \(5.40\) and the population distribution is normal. a. \(H_{0}: \mu=8.5\) versus \(\quad H_{1}: \mu \neq 8.5\) b. \(H_{0}: \mu=8.5\) versus \(\quad H_{1}: \mu>8.5\)

According to the U.S. Bureau of Labor Statistics, all workers in America who had a bachelor's degree and were employed earned an average of \(\$ 1224\) a week in 2014 . A recent sample of 400 American workers who have a bachelor's degree showed that they earn an average of \(\$ 1260\) per week. Suppose that the population standard deviation of such earnings is \(\$ 160\). a. Find the \(p\) -value for the test of hypothesis with the alternative hypothesis that the current mean weekly earning of American workers who have a bachelor's degree is higher than \(\$ 1224\). Will you reject the null hypothesis at \(\alpha=.025 ?\) b. Test the hypothesis of part a using the critical-value approach and \(\alpha=.025\).

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