Question

In: Statistics and Probability

Every Easter, an average of 960,000 hams and 90,000 bottles of wine are sold per state....

Every Easter, an average of 960,000 hams and 90,000 bottles of wine are sold per state. Importantly, the population variance/standard deviation is not known. Below is the number of hams and bottles of wine sold in each of the ten northeast states.

State

# of Hams

# Bottles of Wine

Maine

199,700

45,900

Vermont

93,800

25,500

New Hampshire

200,200

60,000

Massachusetts

1,020,100

294,250

Rhode Island

200,000

74,000

Connecticut

525,100

111,250

New York

2,962,500

780,600

Pennsylvania

1,920,200

480,000

New Jersey

1,341,600

355,400

Delaware

142,500

105,500

Use the above data to answer the following question (each question is worth 1.5 pts):

What is the mean and estimated population variance for both the number of hams and number of bottles of wine sold in the American northeast?

If we are interested in whether or not the average number of hams sold in the American northeast differs from that of the rest of the American population, how would we write the null and alternative hypotheses (using the new statistical notation for stating statistical hypotheses; see page 235)?

If we are interested in whether or not the average number of bottles of wine sold in the American northeast is greater than that of the rest of the American population, how would we write the null and alternative hypotheses (using the new statistical notation for stating statistical hypotheses; see page 235)?

What is t-crit and t-obt for the hypothesis test stated in question #2? Is the hypothesis test significant or insignificant? Would you reject or fail to reject the null hypothesis assuming an alpha-level of 0.05?

What is t-crit and t-obt for the hypothesis test stated in question #3? Is the hypothesis test significant or insignificant? Would you reject or fail to reject the null hypothesis assuming an alpha-level of 0.05?

Solutions

Expert Solution

2) NULL HYPOTHESIS H0:

AVERAGE HYPOTHESIS Ha:

ALPHA= 0.05

t= (860570-960000)/961656.929/sqrt(10)

t= -0.3264

TWO TAILED TEST

Degrees of freedom= 10-1=9

t crit= 2.26

Since calculated value t is less than critical value of t hence hypothesis test is insignificant. Fail to reject null hypothesis H0.

3) NULL HYPOTHESIS H0:

ALTERNATIVE HYPOTHESIS HA:

ALPHA= 0.05

t= 233240-90000/245845.3622/sqrt(10)

t= 1.84

degrees of freedom= 10-1=9

t critical= 1.83

Since critical t value is smaller than calclated t value therefore we reject null hypothesis .Test is significant.


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