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The data for a random sample of 10 paired observations is shown below.

PairSample from Population 1

(Observation 1)

Sample from Population 2 (Observation 2)
12345678910
19253152493459471751
24273653553466512055

a. If you wish to test whether these data are sufficient to indicate that the mean for population 2 is larger than that for population 1, what are the appropriate null and alternative hypotheses? Define any symbols you use.

b. Conduct the test, part a, usingα=.10.

c. Find a 90%confidence interval for μd. Interpret this result.

d. What assumptions are necessary to ensure the validity of this analysis?

Short Answer

Expert verified

A confidence interval is explained as the set of numbers seen in our sample for which we anticipate discovering the number that best represents the populace.

Step by step solution

01

Step-by-Step Solution Step 1: (a) State the null and alternate hypotheses

Let μ1and μ2be the means of populations 1 and 2, respectively, and μdbe the difference between the means of two populations.

Null Hypothesis (H0): There is no difference between the two population means.

H0:μd≥0(μ1−μ2≥0)

Alternate Hypothesis (H0): The mean of population 2 is larger than population 1.

Ha:μd<0(μ1−μ2<0)

02

(b) Conduct the Test

d¯=∑dn=−3710=−3.7

sd=∑d2−(∑d)2nn−1=181−(−37)2109=44.19=2.2136

Here,n=10

So, the degree of freedom will be =n−1=9

α=0.10

From the t-table, the critical value at 10%the level of significance with a degree of freedom 9 is 1.383.

t=d¯sdn=−3.72.213610=−5.29

|t|=5.29

Since5.29>1.383 so null hypothesis will be rejected. Therefore, it can be concluded that the mean of population 2 is larger than population 1.

03

(c) Form the confidence interval

Here, n=10

So, the degree of freedom will be =n−1=9

α=0.10

From the t-table, the critical value at 10%the level of significance with a degree of freedom 9is role="math" localid="1652708493593" 1.383.

The margin of error is,

ME=tα/2(sdn)=(1.833)2.213610=1.2831

The Confidence Interval is,

CI=d¯±ME=(−3.7)±(1.2831)=(−4.98,−2.42)

04

(d) State the assumption

  • A random sample of differences is selected from the target population of differences.
  • The population of differences has an approximately normal distribution.

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Most popular questions from this chapter

Question: Forecasting daily admission of a water park. To determine whether extra personnel are needed for the day, the owners of a water adventure park would like to find a model that would allow them to predict the day’s attendance each morning before opening based on the day of the week and weather conditions. The model is of the form

where,

y = Daily admission

x1 = 1 if weekend

0 otherwise

X2 = 1 if sunny

0 if overcast

X3 = predicted daily high temperature (°F)

These data were recorded for a random sample of 30 days, and a regression model was fitted to the data.

The least squares analysis produced the following results:

with

  1. Interpret the estimated model coefficients.
  2. Is there sufficient evidence to conclude that this model is useful for predicting daily attendance? Use α = .05.
  3. Is there sufficient evidence to conclude that the mean attendance increases on weekends? Use α = .10.
  4. Use the model to predict the attendance on a sunny weekday with a predicted high temperature of 95°F.
  5. Suppose the 90% prediction interval for part d is (645, 1,245). Interpret this interval.

A paired difference experiment produced the following results:

nd=38,x¯1=92,x¯2=95.5,d¯=-3.5,sd2=21

a. Determine the values zfor which the null hypothesis μ1−μ2=0would be rejected in favor of the alternative hypothesis μ1−μ2<0 Use .role="math" localid="1652704322912" α=.10

b. Conduct the paired difference test described in part a. Draw the appropriate conclusions.

c. What assumptions are necessary so that the paired difference test will be valid?

d. Find a90% confidence interval for the mean difference μd.

e. Which of the two inferential procedures, the confidence interval of part d or the test of the hypothesis of part b, provides more information about the differences between the population means?

Drug content assessment. Refer to Exercise 8.16 (p. 467)and the Analytical Chemistry (Dec. 15, 2009) study in which scientists used high-performance liquid chromatography to determine the amount of drug in a tablet. Recall that 25 tablets were produced at each of two different, independent sites. The researchers want to determine if the two sites produced drug concentrations with different variances. A Minitab printout of the analysis follows. Locate the test statistic and p-value on the printout. Use these values α=.05and to conduct the appropriate test for the researchers.

Test and CI for two Variances: Content vs Site

Method

Null hypothesis α1α2=1

Alternative hypothesis α1α2≠1

F method was used. This method is accurate for normal data only.

Statistics

Site N St Dev Variance 95% CI for St Devs

1 25 3.067 9.406 (2.195,4.267)

2 25 3.339 11.147 (2.607,4.645)

Ratio of standard deviation =0.191

Ratio of variances=0.844

95% Confidence Intervals

Method CI for St Dev Ratio CI Variance Ratio

F (0.610, 1.384) (0.372, 1.915)

Tests

Method DF1 DF2 Test statistic p-value

F 24 24 0.84 0.681

Let t0 be a particular value of t. Use Table III in Appendix D to find t0 values such that the following statements are true.

a.=P(-t0<t<t0).95wheredf=10b.P(t≤-t0ort≥t0)wheredf=10c.P(t≤t0)=.05wheredf=10d.P(t≤-t0ort≥t0)=.10wheredf=20e.P(t≤-t0ort≥t0)=.01wheredf=5

The gender diversity of a large corporation’s board of directors was studied in Accounting & Finance (December 2015). In particular, the researchers wanted to know whether firms with a nominating committee would appoint more female directors than firms without a nominating committee. One of the key variables measured at each corporation was the percentage of female board directors. In a sample of 491firms with a nominating committee, the mean percentage was 7.5%; in an independent sample of 501firms without a nominating committee, the mean percentage was role="math" localid="1652702402701" 4.3% .

a. To answer the research question, the researchers compared the mean percentage of female board directors at firms with a nominating committee with the corresponding percentage at firms without a nominating committee using an independent samples test. Set up the null and alternative hypotheses for this test.

b. The test statistic was reported as z=5.1 with a corresponding p-value of 0.0001. Interpret this result if α=0.05.

c. Do the population percentages for each type of firm need to be normally distributed for the inference, part b, to be valid? Why or why not?

d. To assess the practical significance of the test, part b, construct a 95% confidence interval for the difference between the true mean percentages at firms with and without a nominating committee. Interpret the result.

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