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Hypothesis Testing to Increase Significance

See the attached file.
1. To illustrate a production or marketing example: A company stats that is produces cookies with 50 chocolate chips per cookie. A sample of 36 cookies has an average of 49 chips with a standard deviation of 5 chips. Do we have a problem with our advertising claim of 50 chips per cookie (assume a confidence level of 95%)?

2. For a human resource example, stoges'slipper fitting service created an incentive plan for staff. To evaluate this dynamic plan, 4 staff members were selected at random, and their weekly incomes before and after the plan were recorded.

Salesperson before After

Curley $320 $340

larry 290 285

moe 421 475

Cinderella 510 510

was there a significant increase in the typical salespersons weekly income due to the innovative incentive plan? Use the .05 significant level.

Where do I start? We are comparing means for pairs of values. We desire to know the differences in the pairs.

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Solution Preview

Please see the attached file.

1. To illustrate a production or marketing example: A company stats that is produces cookies with 50 chocolate chips per cookie. A sample of 36 cookies has an average of 49 chips with a standard deviation of 5 chips. Do we have a problem with our advertising claim of 50 chips per cookie (assume a confidence level of 95%)?

Solution:

Let's setup a two-tailed test. Since the sample size is big (>30), this is a z-test.
H0:
H1:
Test statistic:
Critical values: , where ...

Solution Summary

The hypothesis testing to increase significance level is determined. The solution compares means for pairs of values.

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