1. A perfectly competitive firm is a price taker. That is, no matter how much the firm produces, it can always sell its product at the current price. In other words, a perfectly competitive firm has no control over price; it simply treats the price of its output as given. Suppose that in a given economic sector, 40% of all the firms are expected to be perfectly competitive. If 15 firms from that sector are randomly selected, then

a. What is the probability that no more than 10 firms are perfectly competitive?
b. What is the probability that at least 6 of the selected firms are perfectly competitive?

2. Earning distribution of United Technology is normal; test the hypothesis that on average the quarterly earning is no more than 1.25 based on the sample of 25 quarters earning results which shows the sample mean 1.15 with the population variance of 0.89

Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.

Stats and Statistics: confidence intervals, p-values, hypothesis testing. ... Two-Tail Test Lower Critical Value -2.022690901 ... we have against the null hypothesis. ...

... 4) ) The null and alternative hypotheses are : ... Note: Use the five-step hypothesis testing procedure to ... of all, let's write the null and alternative hypothesis: ...

... First we have to define the hypotheses we are testing... However, we're testing that the proportion is greater ... case, we cannot reject the null hypothesis that the ...

... Calculate the p-value for the test statistic ... solution provides step by step method for the calculation of problems from probability and hypothesis testing. ...

... plain English, (2) set up the hypotheses in statistical ... type II errors for the hypothesis testing context for ...Test statistic=(720-800)/[275/sqrt(440)]=-6.10 P ...

... d) Step 3: Select the test statistic ... The solution provides step by step method for the calculation of testing of hypothesis, probability, confidence interval ...

... Compute the value of the test statistic z and ... The solution assists with solving hypothesis testing practice problems. ...Probability for X > X Value 95 Z Value ...

... of probability, confidence interval for mean and testing of hypothesis... 8. (a). Give the hypotheses. ... 1.317835934 p -Value 0.059762543 Reject the null hypothesis. ...