Dei Vang KhongDEL ( e Annao (Ph 1)-Zo b X @Course: 17K Statistics fo XyD Questio

Question

Dei Vang KhongDEL ( e Annao (Ph 1)-Zo b X @Course: 17K Statistics fo XyD Question of the Week 6 Economics question]Ch X Facebook × occc.mrooms3.net/pluginfile.php/2068851/mod.r k%206-Econ2023-Summer%20201 6-1.pdf 1. Hypothesis Test for the Mean Suppose that you randomly sample 25 stores and find the average price of a product was $23 Assume that the standard deviation of sample was S3. Test the claim that the price of the product is $20. a. State the null and the alternative hypotheses. Ho: Ha: b. Use the standardized testing procedure and test the claim -0.05 i) Critical Value(s) & Decision Rule ie when will you reject the null) -a drawing here of the CV's is a good idea i Test Statistic: t-? ii) Conclusion: ID ^ efl ENG 10:09 AM 11/7/2017

Explanation / Answer

Question 1

(a) H0 : = $ 20

Ha : $ 20

(b) Here alpha = 0.05

(i) critical value is t = tdf,/2 = t24,0.025 = 2.0639

Decision rule is if t > 2.0639 then we shall reject the null hypothesis.

standard error of the mean = s/ sqrt(n) = 3/ sqrt(25) = 3/5 = 0.6

Here

t = (23 - 20)/ 0.6 = 5

so t > tcritical so we shall reject the null hypothesis and can say that mean is not equal to $ 20.

Question 2.

(a) H0 :p = 0.75

Ha : 0.75

Here, sample proportion of people who live in OKC like OU = 98/150 = 0.6533

standard error of the proportion se0 = sqrt (0.75 * 0.25/150) = 0.0354

(b) Here critical value Zcr = +- 1.96

we shall reject the null hypothesis if l Z l > 1,96

(c) Z = (p^ - p0)/ se0 = (0.6533 - 0.75)/ 0.0354 = -2.73

Here Z > Zcritical so we shall reject the null hypothesis and can conclude that not 75% of people in OKC really are OU fans.

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