In: Statistics and Probability
A sample of 44 observations is selected from one population with a population standard deviation of 3.1. The sample mean is 101.0. A sample of 56 observations is selected from a second population with a population standard deviation of 5.0. The sample mean is 99.5. Conduct the following test of hypothesis using the 0.10 significance level.
H0:U1=U2
H1: U1 does not equal U2
a. is this a one or two tailed test?
b.state the decision rule rounded 2 decimals
the decision rule is to reject H0 if z is outside/inside the interval (____,_____)
c. compute the test statistic to two decimals
d. what is your decision regarding H0?
reject/do not reject
e. what is the p value rounded 4 decimals
Step 1: Set up null and alternative hypotheses.
H0: ?1 = ?2
(Note: H0:
?1 = ?2 ? H0: ?1 -
?2 = 0)
H1: ?1 ? ?2
(Note: H1:
?1 ? ?2 ? H1: ?1 -
?2 ? 0)
Based on hypothesis, we can say it is a two tailed test (Answer a)
Step 2: Determine ? (level of significance of hypothesis test).
? = 0.10 (Note: ? = level of significance of hypothesis test = probability of making Type I error.)
Step 3: Calculate test statistic using x?1, x?2, ?1, ?2, n1, and n2; and then
x?1 for population 1: 101.0
?1 (population 1 standard deviation) =
3.1
n1 (sample size 1) = 44
x?2 for population 2: 99.5
?2 (population 2 standard deviation) = 5 n2
(sample size 2) = 56
(Note: From Step 1, we have H0: ?1 = ?2 ? H0: ?1 - ?2 = 0; therefore, ?1 - ?2 = 0)
Test Statistic z = ((101-99.5)-0)/SQRT(3.12/44+52/56)
Test Statistic z = 1.84 (Answer c)
Step 4: Determine P-value
Using the test statistic in Step 3 as a z-score, we will find the left-tailed area and right-tailed area corresponding to this z-score.
Test Statistic = 1.84
Left-tailed area corresponding to z-score of -1.84 = 0.0329
(Obtained using z distribution table)
Right-tailed area corresponding to z-score of 1.84 = 0.0329
(Obtained using z distribution table)
P-value = Left-Tailed Area + Right-Tailed Area = 0.0658
P-value = 0.0658 (Answer e)
Find Critical Values (-z?/2, z?/2)
-z?/2 is the z-score corresponding to the left-tailed
area.
z?/2 is the z-score corresponding to the right-tailed
area.
?/2 = 0.1/2 = 0.05
Critical Values are -1.64 and 1.64 (Obtained using z distribution table for ?/2 = 0.05)
The decision rule is to reject H0 if z is outside the interval (-1.64,1.64) Answer (b)
In this case, Test Statistic (1.84) is outside the interval (-1.64,1.64), so we reject null hypothesis H0.
Or we can say since P value (0.0658) < ? (0.10) , so we reject null hypothesis H0 (Answer d)