Question

Watch Corporation of Switzerland claims that its watches on average will neither gain nor lose time during a week. A sample of 18 watches provided the following gains (+) or losses (−) in seconds per week.

Data File

−0.29	−0.17	−0.41	−0.37	0.34	−0.23	0.3	0.23	−0.12
−0.33	−0.49	−0.50	−0.51	−0.64	−0.07	−0.23	−0.77	0.05

a)State the null hypothesis and the alternate hypothesis. State the decision rule for 0.02 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

b)Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

c)Is it reasonable to conclude that the mean gain or loss in time for the watches is 0? Use the 0.02 significance level.

d)Estimate the p-value.

Answer 1

a)

null hypothesis:		μ	=	0
Alternate Hypothesis:		μ	≠	0

b)

value of the test statistic =-3.156

c)

reject null hypothesis

d)

p value =0.0058