In: Statistics and Probability
Everyone knows that exercise is important. Recently, employees of one large international corporation were surveyed and asked, How many minutes do you spend daily on some form of rigorous exercise? From a random sample of 35 employees, the mean time spent on vigorous daily exercise was 28.5 minutes. Assume the population standard deviation is 6.8 minutes.
a. Develop a 95% confidence interval estimate of the population mean. Show your work.
b. Develop a 99% confidence interval estimate of the population mean. Show your work.
c. Test if the population mean is less than 30 minutes with the 5% significance level.
d. Test if the population mean is different from 30 minutes with the 5% significance level.
Given, = 28.5, = 6.8
a)
95% confidence interval for is
- Z/2 * / sqrt(n ) < < + Z/2 * / sqrt(n )
28.5 - 1.96 * 6.8 / sqrt(35) < < 28.5 + 1.96 * 6.8 / sqrt(35)
26.2472 < < 30.7528
95% CI is ( 26.2472, 30.7528)
b)
99% confidence interval for is
- Z/2 * / sqrt(n ) < < + Z/2 * / sqrt(n )
28.5 - 2.5758 * 6.8 / sqrt(35) < < 28.5 + 2.5758 * 6.8 / sqrt(35)
25.5394 < < 31.4606
99% CI is ( 25.5394 , 31.4606)
c)
H0: >= 30
Ha: < 30
Test statistics
z = - / / sqrt(n)
= 28.5 - 30 / 6.8 / sqrt(35)
= -1.305
This is test statistics value.
Critical value at 0.05 significance level is -1.645
Since test statistics value > -1.645, we do not have sufficient evidence to reject H0.
p-value = P( Z < z)
= P( Z < -1.305)
= 1 - P( Z < 1.305)
= 1 - 0.9041
= 0.0959
p-value = 0.0959
We conclude at 0.05 level that we fail to support the claim that population mean is less than 30
minutes.
d)
H0: = 30
Ha: 30 (Two tailed)
Test statistics
z = - / / sqrt(n)
= 28.5 - 30 / 6.8 / sqrt(35)
= -1.305
This is test statistics value.
Criitcal value at 0.05 level is -1.96, 1.96
Since test statistics value lie in between -1.96 and 1.96, we do not have sufficient evidence
to reject H0.
p-value = 2 * P(Z < z) ( 2 is multiplied to probability since this is two tailed test)
= 2 * P( Z < -1.305)
= 2 * 0.0959
= 0.1918
p-value = 0.1918
We conclude at 0.05 level that we fail to support the claim that population mean is different
from 30 minutes.