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Testing of Hypothesis and Confidence Interval

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1. A random sample of 500 measurements on the length of stay in hospitals had sample mean 5.4 days and sample standard deviation 3.1 days. A federal regulatory agency hypothesizes that the average length of stay is in excess of 5 days.
a. Do the data support this hypothesis? Use  = 0.05.
b. Construct a 98% confidence interval from the data, and test the hypothesis with the confidence interval. Is the conclusion the same as in part a?
c. For  = 0.05, calculate  when a = 5.5, and determine the power of the test at this value of a.
d. How large should the sample size be if we require that  = 0.01 and  = 0.05 when a = 5.5?

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The solution contains the determination of confidence interval, sample size and power for a statistical testing of hypothesis problem.

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1. A random sample of 500 measurements on the length of stay in hospitals had sample mean 5.4 days and sample standard deviation 3.1 days. A federal regulatory agency hypothesizes that the average length of stay is in excess of 5 days.
a. Do the data support this hypothesis? Use  = 0.05.
b. Construct a 98% confidence interval from the data, and test the hypothesis with the confidence interval. Is the conclusion the same as in part a?
c. For  = 0.05, calculate  when a = 5.5, and determine the power of the test at this value of a.
d. How large should the sample size be if we require that  = 0.01 and  = 0.05 when a = ...

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