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91Ó°ÊÓ

Consumer Reports stated that the mean time for a Chrysler Concorde to go from 0 to 60 miles per hour is \(8.7\) seconds. (a) If you want to set up a statistical test to challenge the claim of \(8.7\) seconds, what would you use for the null hypothesis? (b) The town of Leadville, Colorado, has an elevation over 10,000 feet. Suppose you wanted to test the claim that the average time to accelerate from 0 to 60 miles per hour is longer in Leadville (because of less oxygen). What would you use for the alternate hypothesis? (c) Suppose you made an engine modification and you think the average time to accelerate from 0 to 60 miles per hour is reduced. What would you use for the alternate hypothesis? (d) For each of the tests in parts (b) and (c), would the \(P\) -value area be on the left, on the right, or on both sides of the mean? Explain your answer in each case. For Problems \(19-24\), please provide the following information. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test? (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. Compute the value of the sample test statistic. (c) Find (or estimate) the \(P\) -value. Sketch the sampling distribution and show the area corresponding to the \(P\) -value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level \(\alpha\) ? (e) Your conclusion in the context of the application.

Short Answer

Expert verified
(a) \( H_0: \mu = 8.7 \); (b) \( H_1: \mu > 8.7 \) for Leadville; (c) \( H_1: \mu < 8.7 \) for modification; (d) right for Leadville, left for modification.

Step by step solution

01

Understand the Null Hypothesis (a)

The null hypothesis for part (a) is that the mean time for a Chrysler Concorde to go from 0 to 60 miles per hour is indeed 8.7 seconds. Therefore, the null hypothesis can be stated as \( H_0: \mu = 8.7 \) seconds.
02

Alternative Hypothesis for Leadville (b)

In Leadville, where the elevation is high, we suspect the average time is longer. The alternative hypothesis should be that the mean time increases, so \( H_1: \mu > 8.7 \). This sets up a right-tailed test.
03

Alternative Hypothesis for Engine Modification (c)

If you think the engine modification reduces time, the alternative hypothesis should state that mean time is less than 8.7 seconds, leading to \( H_1: \mu < 8.7 \). This sets up a left-tailed test.
04

Determine P-value Area for Each Test (d)

For the Leadville test (b), since it's a right-tailed test (\( H_1: \mu > 8.7 \)), the P-value area will be on the right side of the mean. For the engine modification test (c), since it's a left-tailed test (\( H_1: \mu < 8.7 \)), the P-value area will be on the left side of the mean.

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Key Concepts

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

Null Hypothesis
The null hypothesis is a fundamental concept in statistics. It is the assertion that there is no effect or no difference, and it serves as a starting point for statistical testing. For example, if a car manufacturer claims the average acceleration time from 0 to 60 mph is 8.7 seconds, the null hypothesis would state that the true mean time really is 8.7 seconds:
  • Formally, we can write this as \( H_0: \mu = 8.7 \) seconds, where \( \mu \) represents the population mean.
  • The goal of testing a null hypothesis is to determine if there is enough evidence to reject this assumption and suggest an effect exists.
  • A null hypothesis is typically tested through observations and calculations, leading to a decision to either reject or not reject it.
Understanding the null hypothesis helps in forming the basis of any statistical testing process, setting the groundwork for comparison against observed data.
Alternative Hypothesis
The alternative hypothesis is seen as the opposite of the null hypothesis. It suggests that there is a statistically significant effect or a difference. For any test, formulating the alternative hypothesis helps in understanding what it means if the null hypothesis is rejected. Here are important points about the alternative hypothesis:
  • It is denoted as \( H_1 \) or \( H_a \).
  • If you suspect that something other than the stated null is true, such as a longer or shorter acceleration time, you propose an alternative hypothesis.
  • For example, in Leadville, where the high elevation is expected to prolong acceleration time, the alternative hypothesis would be \( H_1: \mu > 8.7 \). This suggests a right-tailed test.
  • With engine modifications meant to reduce time, the hypothesis \( H_1: \mu < 8.7 \) sets up a left-tailed test.
Choosing the right alternative hypothesis is crucial, as it determines the direction of the test and what kind of statistical evidence is needed to support your claim.
P-value
The P-value is a key statistic used in hypothesis testing to assess the evidence against the null hypothesis. It measures the probability of obtaining that sample's results, under the assumption that the null hypothesis is true. Key characteristics of P-values include:
  • They are compared with the level of significance, \( \alpha \), to help decide whether to reject the null hypothesis.
  • If the P-value is less than or equal to \( \alpha \), it suggests that the observed data is inconsistent with the null hypothesis, leading us to reject it in favor of the alternative hypothesis.
  • The location of the P-value depends on the nature of the alternative hypothesis. For instance, with \( H_1: \mu > 8.7 \), the P-value area is on the right of the mean; with \( H_1: \mu < 8.7 \), it is on the left.
The P-value is a central concept in determining statistical significance and guiding data-driven decisions.
Sampling Distribution
The sampling distribution is a statistical tool that represents the distribution of a statistic, like the sample mean, over numerous samples from the same population. Here's what you should know about sampling distributions:
  • They provide a way to understand the variability and distribution of data gathered from samples.
  • The shape, mean, and spread (variance) of the sampling distribution depend on the population being sampled and the sampling method used.
  • If enough samples are taken, the Central Limit Theorem states that the sampling distribution of the mean will be approximately normally distributed, regardless of the shape of the population distribution, as long as the sample size is sufficiently large.
  • Understanding sampling distributions helps in calculating test statistics and determining critical regions for hypothesis testing.
This concept is essential for determining how sample statistics relate to the actual population, and it underpins many statistical inference procedures.

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Most popular questions from this chapter

If we reject the null hypothesis, does this mean that we have proved it to be false beyond all doubt? Explain your answer.

Pyramid Lake is on the Paiute Indian Reservation in Nevada. The lake is famous for cutthroat trout. Suppose a friend tells you that the average length of trout caught in Pyramid Lake is \(\mu=19\) inches. However, the Creel Survey (published by the Pyramid Lake Paiute Tribe Fisheries Association) reported that of a random sample of 51 fish caught, the mean length was \(\bar{x}=18.5\) inches, with estimated standard deviation \(s=3.2\) inches. Do these data indicate that the average length of a trout caught in Pyramid Lake is less than \(\mu=19\) inches? Use \(\alpha=0.05\).

The price-to-earnings (P/E) ratio is an important tool in financial work. A random sample of 14 large U.S. banks (J.P. Morgan, Bank of America, and others) gave the following \(\mathrm{P} / \mathrm{E}\) ratios (Reference: Forbes). \(\begin{array}{lllllll}24 & 16 & 22 & 14 & 12 & 13 & 17 \\ 22 & 15 & 19 & 23 & 13 & 11 & 18\end{array}\) The sample mean is \(\bar{x} \approx 17.1\). Generally speaking, a low \(\mathrm{P} / \mathrm{E}\) ratio indicates a "value" or bargain stock. A recent copy of the Wall Street Journal indicated that the \(\mathrm{P} / \mathrm{E}\) ratio of the entire \(\mathrm{S\&P} 500\) stock index is \(\mu=19\). Let \(x\) be a random variable representing the \(\mathrm{P} / \mathrm{E}\) ratio of all large U.S. bank stocks. We assume that \(x\) has a normal distribution and \(\sigma=4.5 .\) Do these data indicate that the \(\mathrm{P} / \mathrm{E}\) ratio of all U.S. bank stocks is less than \(19 ?\) Use \(\alpha=0.05\).

(a) For the same data and null hypothesis, is the \(P\) -value of a one-tailed test (right or left) larger or smaller than that of a two-tailed test? Explain. (b) For the same data, null hypothesis, and level of significance, is it possible that a one-tailed test results in the conclusion to reject \(H_{0}\) while a two-tailed test results in the conclusion to fail to reject \(H_{0}\) ? Explain. (c) For the same data, null hypothesis, and level of significance, if the conclusion is to reject \(H_{0}\) based on a two-tailed test, do you also reject \(H_{0}\) based on a one-tailed test? Explain. (d) If a report states that certain data were used to reject a given hypothesis, would it be a good idea to know what type of test (one-tailed or two-tailed) was used? Explain.

Suppose the \(P\) -value in a two-tailed test is \(0.0134\). Based on the same population, sample, and null hypothesis, and assuming the test statistic \(z\) is negative, what is the \(P\) -value for a corresponding left-tailed test?

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