EBK STATISTICAL TECHNIQUES IN BUSINESS
EBK STATISTICAL TECHNIQUES IN BUSINESS
17th Edition
ISBN: 9781259924163
Author: Lind
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 11, Problem 8E

For Exercises 7 and 8: (a) state the decision rule, (b) compute the pooled estimate of the population variance, (c) compute the test statistic, (d) state your decision about the null hypothesis, and (e) estimate the p-value.

8. The null and alternate hypotheses are:

H 0 : μ 1 = μ 2 H 1 : μ 1 μ 2

A random sample of 15 observations from the first population revealed a sample mean of 350 and a sample standard deviation of 12. A random sample of 17 observations from the second population revealed a sample mean of 342 and a sample standard deviation of 15. At the .10 significance level, is there a difference in the population means?

a.

Expert Solution
Check Mark
To determine

Determine the decision rule.

Explanation of Solution

Calculation:

Degrees of freedom:

The degrees of freedom is as follows:

df=n1+n22=17+152=30

Step-by-step procedure to obtain the critical value using MINITAB software:

  1. 1. Choose Graph > Probability Distribution Plot choose View Probability > OK.
  2. 2. From Distribution, choose ‘t’ distribution.
  3. 3. In Degrees of freedom, enter 30.
  4. 4. Click the Shaded Area tab.
  5. 5. Choose P Value and Two Tail for the region of the curve to shade.
  6. 6. Enter the probability value as 0.05.
  7. 7. Click OK.

Output obtained using MINITAB software is given below:

EBK STATISTICAL TECHNIQUES IN BUSINESS, Chapter 11, Problem 8E , additional homework tip  1

From the MINITAB output, the critical value is ±1.697

The decision rule is,

If t <1.697, then reject the null hypothesis H0.

If t>1.697, then reject the null hypothesis H0.

b.

Expert Solution
Check Mark
To determine

Find the value of the pooled estimate of the population variance.

Answer to Problem 8E

The pooled estimate of the population variance is 187.20.

Explanation of Solution

Calculation:

Pooled estimate:

The pooled estimate of the population variance is as follows:

=(n11)s12+(n21)s22n1+n22

Substitute s1 as 12, s2 as 15, n1 as 15, and n2 as 17 in the above formula as follows:

sp2=(151)(12)2+(171)(15)215+172=(14)(144)+(16)(225)30=5,61630=187.20

Thus, the pooled estimate of the population variance is 187.20.

c.

Expert Solution
Check Mark
To determine

Find the value of test statistic.

Answer to Problem 8E

The value of the test statistic is 1.651.

Explanation of Solution

Test statistic:

The test statistic for the hypothesis test of μ1μ2 when σ1 and σ2 are unknown is as follows:

t=(x¯1x¯2)sp2(1n1+1n2)

Substitute x¯1 as 350, x¯2 as 342, sp2 as 187.20, n1 as 15, and n2 as 17 in the above formula as follows:

t=350342187.20(115+117)=823.4918=84.8468=1.651

Thus, the test statistic is 1.651.

d.

Expert Solution
Check Mark
To determine

Determine the decision regarding H0

Answer to Problem 8E

The decision is fail to reject the null hypothesis.

Explanation of Solution

The critical value is 1.697 and the value of test statistic is 1.651.

The value of test statistic is less than the critical value.

That is, Test statistic(1.651)<Criticalvalue(1.697).

From the decision rule, fail to reject the null hypothesis.

e.

Expert Solution
Check Mark
To determine

Find the p-value.

Answer to Problem 8E

The p-value is 0.109.

Explanation of Solution

The p-value is obtained below:

Step-by-step procedure to obtain the p-value using MINITAB software:

  1. 1. Choose Graph > Probability Distribution Plot choose View Probability > OK.
  2. 2. From Distribution, choose ‘t’ distribution.
  3. 3. In Degrees of freedom, enter 30.
  4. 4. Click the Shaded Area tab.
  5. 5. Choose X Value and Two Tail for the region of the curve to shade.
  6. 6. Enter the X value as 1.651.
  7. 7. Click OK.

Output obtained using MINITAB software is given below:

EBK STATISTICAL TECHNIQUES IN BUSINESS, Chapter 11, Problem 8E , additional homework tip  2

From the MINITAB output, the p-value for one side is 0.05459.

p-value=2(0.05459)=0.109

Thus, the p-value is 0.109.

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Chapter 11 Solutions

EBK STATISTICAL TECHNIQUES IN BUSINESS

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