Hypothesis testing problems
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The Employment and Training Administration reported the U.S. mean unemployment insurance benefit of $238 per week (The World Almanac 2003). A researcher in the state of Virginia anticipated that sample data would show evidence that the mean weekly unemployment insurance benefit in Virginia was below the national level. For a sample of 136 individuals, the sample mean weekly unemployment insurance benefit was $229 with a sample standard deviation of $70.
a) In proper notation, state the hypotheses of this test.
b) What is the rejection rule at the default value of α?
c) Show your calculation of the test statistic. ______ = ______________
d) What is the conclusion about the issue in question ?
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Solution Summary
The solution provides a step by step method for the calculation of test statistics and P values. Formulas for the calculation and Interpretations of the results are also included.
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Hypotheses test
The Employment and Training Administration reported the U.S. mean unemployment insurance benefit of $238 per week (The World Almanac 2003). A researcher in the state of Virginia anticipated that sample data would show evidence that the mean weekly unemployment insurance benefit in Virginia was below the national level. For a sample of 136 individuals, the sample mean weekly unemployment insurance benefit was $229 with a sample standard deviation of $70.
a) In ...
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