Hypothesis Testing- 2 samples
Part 1) State the distribution to use for the test. (Enter your answer in the form z or tdf where df is the degrees of freedom. Round your answer to two decimal places.)
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- I would like to test the hypothesis that the average round trip airfare between Phoenix and San Diego is higher for a flight originating in Phoenix when compared to a flight originating in San Diego. The following data summarizes the sample statistics for round trip flights originating in both cities. Originating City Phoenix San Diego Sample mean $240 $160 Sample size 18 18 Sample standard deviation $70 $40 If Population 1 is defined as flights originating in Phoenix and Population 2 is defined as flights originating in San Diego, the 90% confidence interval for the difference in population means is O ($50.20, $109.80) O ($42.80, $117.20) ($47.80, $112.20) O ($51.80, $108.20)arrow_forwardThe Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. Although it requires a successful completion of three levels of grueling exams, it also entails promising careers with lucrative salaries. A student of finance is curious about the average salary of a CFA charterholder. He takes a random sample of 36 recent charterholders and computes a mean salary of $129,000 with a standard deviation of $22,000. Use this sample information to determine the 99% confidence interval for the average salary of a CFA charterholder. (You may find it useful to reference the t table. Round final answers to the nearest whole number.) Confidence intervalarrow_forwardThe Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. Although it requires a successful completion of three levels of grueling exams, it also entails promising careers with lucrative salaries. A student of finance is curious about the average salary of a CFA charterholder. He takes a random sample of 36 recent charterholders and computes a mean salary of $129,000 with a standard deviation of $22,000. Use this sample information to determine the 99% confidence interval for the average salary of a CFA charterholder. (You may find it useful to reference the t table. Round final answers to the nearest whole number.)arrow_forward
- Utility bills for single family homes are at least $150 per month. After an improvement in infrastructure, the utility company would like to determine if the utility bills are now less than $150 per month. The next 25 utility bills averaged $145.25 per month with the sample standard deviation of $10. At 0.10 significance level, test if the bills are less than $150. 1. Which of the following (A,B,C,or D) would be the correct hypothesis statement? A. Ho: p ≤ 0.25 Ha: p > 0.25 B. Ho: >= 150 H₂: μ 150 D. Ho: M 130 H₁: μ> 130 2. The critical value is 3. The statistical value in this problem is... three decimal places 4. The p-value range associated with the test statistic from the t table is ... 5. At a 10% level of significance, will the decision be to Reject or DNR?arrow_forwardAn economist is studying salaries for high technology companies and wants to test the claim that the average salary for high tech employees is less than $70,000. The economist selects a sample of 35 random employees from various high tech companies and records their salaries. Based on past studies, the economist determines that the population standard deviation is $8,500. The economist conducts a one-mean hypothesis test at the 5% significance level to test the claim that the average salary for high tech employees is less than $70,000. Which is the correct setup for the null and alternative hypothesis for this example? Select the correct answer below: H0:μ=70,000; Ha:μ<70,000, which is a left-tailed test. H0:μ=70,000; Ha:μ>70,000, which is a right-tailed test H0:μ<70,000; Ha:μ=70,000, which is a left-tailed test. H0:μ>70,000; Ha:μ=70,000, which is a left-tailed test.arrow_forwardManagers of an industrial plant want to determine which of two types of fuel, gas or electric, is more cost efficient (measured in cost per unit of energy). Independent random samples were taken of plants using electricity and plants using gas. These samples consisted of 10 plants using electricity, which had a mean cost per unit of $53.50 and standard deviation of $8.19 , and 11 plants using gas, which had a mean of $55.40 and standard deviation of $8.23 . Assume that the populations of costs per unit are normally distributed for each type of fuel, and assume that the variances of these populations are equal. Construct a 95% confidence interval for the difference −μ1μ2 between the mean cost per unit for plants using electricity, μ1 , and the mean cost per unit for plants using gas, μ2 . Then find the lower limit and upper limit of the 95% confidence interval. Carry your intermediate computations to at least three decimal places. Round your responses to at least…arrow_forward
- MC Qu. 10-64 Sales at a fast-food restaurant average... Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to Increase daily sales. In order to determine the effectiveness of the advertising campaign, a sample of 49 day's sales were taken. The sample showed average daily sales of $6,300. From past history, the restaurant knew that its population standard deviation is about $1,000. If the level of significance is 0.01, have sales increased as a result of the advertising campaign? Multiple Choice Fail to reject the null hypothesis. Reject the null hypothesis and conclude the mean is higher than $6,000 per day. Reject the null hypothesis and conclude the mean is lower than $6,000 per day. Reject the null hypothesis and conclude that mean equal to $6,000 per day.arrow_forwardDo political science classes require more writing than history classes? The 54 randomly selected political science classes assigned an average of 16.4 pages of essay writing for the course. The standard deviation for these 54 classes was 4.8 pages. The 52 randomly selected history classes assigned an average of 15.8 pages of essay writing for the course. The standard deviation for these 52 classes was 4.6 pages. What can be concluded at the a = 0.10 level of significance? For this study, we should use Select an answer a. The null and alternative hypotheses would be: Ho: Select an answer Select an answer Select an answer H1: Select an answer Select an answer Select an answer b. The test statistic ? V = (please show your answer to 3 decimal places.) c. The p-value = d. The p-value is ? Va e. Based on this, we should Select an answer f. Thus, the final conclusion is that ... |(Please show your answer to 4 decimal places.) ] the null hypothesis. O The results are statistically…arrow_forwardCommunity college instructors' salaries in one state are very low, so low that educators in that state regularly complain about their compensation. The national mean is $57,636$57,636, but instructors from Mississippi claim that the mean in their state is significantly lower. They survey a simple random sample of 3737 colleges in the state and calculate a mean salary of $52,534$52,534 with a standard deviation of $15,791$15,791. Test the instructors' claim at the 0.050.05 level of significance. Step 3 of 3 : Draw a conclusion and interpret the decision.arrow_forward
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