Purchase Solution

Statistical Hypothesis Testing

Not what you're looking for?

Ask Custom Question

1. State the null and alternative hypothesis for the following situations.
a) A federal auditor believes that a health care company has overcharged its patients.
b) The editor of a magazine believes that the mean income of subscribers to its magazine is $75,000.
c) An operations manager must maintain machines that produce 50 pound bags of fertilizer.
d) A manufacturer believes that the average life of its competitor's battery is less than 10 hours.

2. A crime reporter was told that, on the average, 3,000 burglaries per month occurred in his city. The reporter examined past data, which were used to compute a 95% confidence interval for the number of burglaries per month. The confidence interval was from 2,176 to 2,784. At a 5% level of significance, do these data tend to support the alternative hypothesis, Ha: μ ≠3,000?

3. A movie theater complex will raise its ticket price if the average ticket price of theaters in southern California exceeds $7.50. A random sample of 36 theaters resulted in a mean of $7.80. The population standard deviation is $1.00. What conclusion can be made at the 10% significance level? How about at the 5% significance level?

4. The producer of Take-a-Bite, a snack food, claims that each package weighs 175 grams. A representative of a consumer advocate group selected a random sample of 70 packages. From this sample, the mean is 172 grams. The population standard deviation is known to be 8 grams. Find and interpret the p-value for testing that the mean weight of Take-a-Bite is less than 175grams.

Purchase this Solution
Solution Summary

The solution states statistical hypothesis testing. Why an operations manager must maintain machines that produce 50 pound bags of fertilizers is determined.

Solution Preview

1. State the null and alternative hypothesis for the following situations.
a) A federal auditor believes that a health care company has overcharged its patients.
Null hypothesis: a health care company has not overcharged its patients;
Alternative hypothesis: a health care company has overcharged its patients.

b) The editor of a magazine believes that the mean income of subscribers to its magazine is $75,000.
Null hypothesis: the mean income of subscribers to its magazine is $75,000;
Alternative hypothesis: the mean income of subscribers to its magazine is not equal to $75,000.

c) An operations manager must maintain machines that produce 50 pound bags of fertilizer.
Null hypothesis: the mean production number of fertilizer bags is equal to ...

Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

View More Free Quizzes
Related BrainMass Solutions

  • Steps in Hypothesis Testing

    However, statistical software gives instantaneous results. References: Siddharth Kalla (2009). Statistical Hypothesis Testing.

  • Hypothesis testing compared to our legal system

    In statistical test construction also, the same philosophy is used. In statistical testing of hypothesis there are two types of errors: Type I Error: Rejecting a null hypothesis when it is true.

  • The five-step process for hypothesis testing

    127555 Five-Step Process for Hypothesis Testing What is the five-step process for hypothesis testing? Is the order important? Why or why not?

  • General Process of Hypothesis Testing for Stats Students

    501749 General Process of Hypothesis Testing in Statistics What is hypothesis testing? Explain the general process and the steps included in conducting a hypothesis test?

  • Hypothesis Testing of Enrollment Data

    This solution conducts a hypothesis testing by defining the null and alternative hypothesis and testing the test statistic against the p-value to either accept or reject the null hypothesis on the enrollment data.

  • Statistics Discussion Questions

    What are the theoretical considerations of hypothesis testing and why are these considerations important when conducting research studies? Define statistical comparisons, correlations and predictions as they relate to social science research.

  • Applications of hypothesis testing using Excel

    This solution describes an application of hypothesis testing and limitations of Excel`s statistical functions.

  • Statistics - Hypothesis Testing

    193219 Hypothesis Testing - Based on your readings in the white papers, text and lectures, how do you feel that the inferential statistical technique of Hypothesis Testing can be used by managers to make better business decisions?

  • Hypothesis Testing Question

    137384 Hypothesis Testing Question Calculate and interpret the appropriate statistical test to determine the relationship between the following two variables.

  • Measurement Scale Types, Test Stats & Probability

    The five steps in hypothesis testing are Step1: Null hypothesis: Alternate hypothesis: Step2: Level of significance: Critical value: Decision rule: Step3: Test statistic: Step4: P-value: Step5: Statistical decision: Is the order important

View More Related Solutions