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To compare the means of two populations, independent random samples of 400 observations are selected from each population, with the following results:

Sample 1

Sample 2

x1=5,2751=150

x2=5,2402=200

a. Use a 95%confidence interval to estimate the difference between the population means (12). Interpret the confidence interval.

b. Test the null hypothesis H0:(12)=0versus the alternative hypothesis Ha:(12)0 . Give the significance level of the test and interpret the result.

c. Suppose the test in part b was conducted with the alternative hypothesis Ha:(12)0 . How would your answer to part b change?

d. Test the null hypothesis H0:(12)=25 versus Ha:(12)25. Give the significance level and interpret the result. Compare your answer with the test conducted in part b.

e. What assumptions are necessary to ensure the validity of the inferential procedures applied in parts a鈥揹?

Short Answer

Expert verified

A hypothesis is a concept that has been proposed as a reasonable reason for a certain condition as well as situation, however, has never been proven right.

Step by step solution

01

Step-by-Step Solution Step 1: Explanation.

A type of statistical analysis in which the assumptions about a population parameter are tested is called Hypothesis Testing. It estimates the relation between 2 statistical variables.

02

(a) Find the confidence interval.

It is given that, x1=5275, 1=150, x2=5240, 2=200and n=400 .

The critical value Z at 5%the level of significance is1.96.

A large sample 95%confidence interval (12)is (x1x2)Z212n+22n

=(52755240)1.96(150)2400+(200)2400=351.9656.25+100=351.96(12.5)=3524.5=(10.5,59.5)

Therefore, the difference between the population means at the confidence interval is (10.5,59.5).

03

(b) Test the null hypothesis H0:(μ1 - μ2)= 0 .

It is given that,

Null Hypothesis,H0:(1-渭2)=0and

Alternate Hypothesis,Ha:(1-渭2)0

The level of significance is 5%.

Z=(x1x2)(12)12n+22n=(52755240)0(150)2400+(200)2400=3512.5=2.80

So, the p-value is .00511.

As the p-value is less than the significance level, so the null hypothesis is rejected. Therefore, it can be concluded that there is a significant difference between the two means.

04

(c) Test the alternate hypothesis Ha:(μ1 − μ2)> 0

It is given that,

Null Hypothesis,H0:(12)=0and

Alternate Hypothesis, Ha:(12)>0

The level of significance is 5%

Z=(x1x2)(12)12n+22n=(52755240)0(150)2400+(200)2400=3512.5=2.80

So, the value ofp is .0026.

As the value pis less than the significance level, so the null hypothesis is rejected. Therefore, it can be concluded that the mean of the first population is greater than the mean of the second population, Ha:1>2.

05

(d) Test the null hypothesis H0:(μ1 - μ2)= 25

It is given that,

Null Hypothesis,H0:(1-渭2)=25and

Alternate Hypothesis,Ha:(1-渭2)25

The level of significance is 5%.

Z=(x1x2)(12)12n+22n=(52755240)25(150)2400+(200)2400=1012.5=0.8

So, the value of pis .423711.

As the valuep is more than the significance level, so the null hypothesis is accepted. Therefore, it can be concluded that there is no significant difference between the two means.

06

(e) State the necessary assumptions.

The following requirements must be met to make accurate large-sample inferences:

  1. The two samples are randomly selected independently from the two target populations.
  2. The sample sizes are large (more than 30). So, as per the Central Limit Theorem, the sampling distribution of the sample means will approach a normal distribution, irrespective of the shape of the population distribution.
  3. Since the sample size is large, so Z-test will be used for analysis.

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Most popular questions from this chapter

Homework assistance for accounting students. How much assistance should accounting professors provide students for completing homework? Is too much assistance counterproductive? These were some of the questions of interest in a Journal of Accounting Education (Vol. 25, 2007) article. A total of 75 junior-level accounting majors who were enrolled in Intermediate Financial Accounting participated in an experiment. All students took a pretest on a topic not covered in class; then, each was given a homework problem to solve on the same topic. However, the students were randomly assigned different levels of assistance on the homework. Some (20 students) were given the completed solution, some (25 students) were given check figures at various steps of the solution, and the rest (30 students) were given no help. After finishing the homework, each student was given a posttest on the subject. One of the variables of interest to the researchers was the knowledge gain (or test score improvement), measured as the difference between the posttest and pretest scores. The sample means knowledge gains for the three groups of students are provided in the table.

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Given the following values of x, s, and n, form a 90% confidence interval for2

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