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Z-TESTS We will use the formula for Z from lecture notes, page 2. since H 0 is u

ID: 3153627 • Letter: Z

Question

Z-TESTS

We will use the formula for Z from lecture notes, page 2.

since H0 is usually m1=m2, then m1-m2= 0 and:

for 1, 2 known

for 1, 2 unknown

Z =                if n1 + n2 32

Steps to be covered:

State the hypotheses, and identify the claim

Find the critical value(s) – you might want to draw the curve

Compute the test (statistic) value

Make the decision to reject or not reject the null hypothesis.

PROBLEM 2:

Does smoking makes a difference when it comes to the number of absent days?

Test at .05 significance level.

Smokers:          Average number of days absent = 14.7;            standard deviation = 5.0;   n = 44
Non-Smokers: Average number of days absent = 8.3; standard deviation = 4.0;   n = 60

PROBLEM 3:

Are the machine tools manufactured by Company X and Y different with regard to how long they last?

Company X

Company Y

16.2 weeks

15.9 weeks

s

.2 weeks

.2 weeks

n

80

80

Test at a = .08

Company X

Company Y

16.2 weeks

15.9 weeks

s

.2 weeks

.2 weeks

n

80

80

Explanation / Answer

2.

Formulating the null and alternative hypotheses,              
              
Ho:   u1 - u2   =   0  
Ha:   u1 - u2   =/   0   [claim]

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At level of significance =    0.05          

As we can see, this is a    two   tailed test.  
Hence, the critical values are

zcrit = -1.96, 1.96 [ANSWER]

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Calculating the means of each group,              
              
X1 =    14.7          
X2 =    8.3          
              
Calculating the standard deviations of each group,              
              
s1 =    5          
s2 =    4          
              
Thus, the standard error of their difference is, by using sD = sqrt(s1^2/n1 + s2^2/n2):              
              
n1 = sample size of group 1 =    44          
n2 = sample size of group 2 =    60          
Also, sD =    0.913700435          
              
Thus, the z statistic will be              
              
z = [X1 - X2 - uD]/sD =    7.004483915   [ANSWER, TEST STATISTIC]

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where uD = hypothesized difference =    0          
              
As |z| > 1.96, WE REJECT THE NULL HYPOTHESIS.      

Hence, there is significant evidence that smoking makes a difference when it comes to the number of absent days at 0.05 level. [CONCLUSION]  

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