In: Statistics and Probability
a)
Hypothesis
The Null and Alternative Hypotheses are defined as,
This is a right-tailed test.
The significance level = 0.05
Test-statistic
The t statistic is obtained using the formula,
P-value
The p-value is obtained from t distribution table for t = -2.5 and degree of freedom = n - 1 = 25 - 1 = 24. (In excel use function =T.DIST.RT(-2.5,24))
Conclusion
Since the P-value is greater than the significance level = 0.05 at a 5% significance level, the null hypothesis is not rejected. Hence we can conclude that there is not sufficient evidence to conclude that the mean decrease in cholesterol is less than advertised.
b)
Answer: Type II error
Explanation: A Type II error is the probability of failing to reject the null hypothesis when the null hypothesis is actually FALSE. Since we are failed to reject the null hypothesis, there is the possibility of a type II error.
c)
The one-sided 95% confidence interval for the mean is obtained using the formula,
The t critical value is obtained from t distribution table for significance level = 0.05 and degree of freedom = n -1 = 125 - 1 = 24.
d)
R code:
power.t.test(n=25,delta=-1.5,sd=3,sig.level = 0.05,power = NULL,type = "one.sample", alternative = "one.sided", strict = FALSE)
R output
Explanation: