Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
6th Edition
ISBN: 9781337115186
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Chapter 9.3, Problem 14E

a.

To determine

Find the p-value for x¯=23 and state the conclusion.

a.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.3844.

The conclusion is “do not reject the null hypothesis”.

Explanation of Solution

Calculation:

It is given that the sample size is n=75, the sample mean is x¯=23, and the population standard deviation is σ=10.

The hypotheses are given below:

Null hypothesis: H0:μ=22

Alternative hypothesis: Ha:μ22

Test statistic:

The formula for finding test statistic is as follows:

z=x¯μ0σn

Here, x¯ represents the sample mean, μ0 represents the hypothesized value of the population mean, σ represents the population standard deviation, and n represents the sample size.

Substitute 23 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=23221075=1108.6602=11.1547=0.87

Thus, the value of the test statistic is 0.87.

For p-value:

In this case, z is greater than 0. Therefore, the p-value is two times the upper tail area.

That is,

p-value=2(Upper tail area)=2(1Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value 0.8 in the first column.
  • Locate the value 0.07 in the first row.
  • The intersecting value that corresponds to 0.87 is 0.8078.

p-value=2(10.8078)=2(0.1922)=0.3844

Thus, the p-value is 0.3844.

Rejection rule:

If p-valueα, reject the null hypothesis

If p-value>α, do not reject the null hypothesis.

Conclusion:

Here, the p-value is greater than the level of significance.

That is, p-value(=0.3844)>α(=0.01).

By the rejection rule, the null hypothesis is not rejected.

b.

To determine

Find the p-value for x¯=25.1 and state the conclusion.

b.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.0074.

The conclusion is “reject the null hypothesis”.

Explanation of Solution

Calculation:

Test statistic:

Substitute 25.1 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=25.1221075=3.1108.6602=3.11.1547=2.68

Thus, the value of the test statistic is 2.68.

For p-value:

In this case, z is greater than 0. Therefore, the p-value is two times the upper tail area.

That is,

p-value=2(Upper tail area)=2(1Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value 2.6 in the first column.
  • Locate the value 0.08 in the first row.
  • The intersecting value that corresponds to 2.68 is 0.9963.

p-value=2(10.9963)=2(0.0037)=0.0074

Thus, the p-value is 0.0074.

Conclusion:

Here, the p-value is less than the level of significance.

That is, p-value(=0.0074)<α(=0.01).

By the rejection rule, the null hypothesis is rejected.

c.

To determine

Find the p-value for x¯=20 and state the conclusion.

c.

Expert Solution
Check Mark

Answer to Problem 14E

The p-value is 0.083.

The conclusion is “do not reject the null hypothesis”.

Explanation of Solution

Calculation:

Test statistic:

Substitute 20 for x¯, 22 for μ0, 10 for σ, and 75 for n in z formula.

z=20221075=2108.6602=21.1547=1.73

Thus, the value of the test statistic is –1.73.

For p-value:

In this case, z is less than 0. Therefore, the p-value is two times the lower tail area.

That is,

p-value=2(Lower tail area)

Use Table 1: Cumulative probabilities for the standard normal distribution to find probability.

  • Locate the value –1.7 in the first column.
  • Locate the value 0.03 in the first row.
  • The intersecting value that corresponds to–1.73 is 0.0418.

p-value=2(0.0418)=0.0836

Thus, the p-value is 0.0836.

Conclusion:

Here, the p-value is greater than the level of significance.

That is, p-value(=0.0836)>α(=0.01).

By the rejection rule, the null hypothesis is not rejected.

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Chapter 9 Solutions

Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)

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