Q1) Last year the government made a claim that the average income of the American people...

Q1) Last year the government made a claim that the average income of the American people was $34100 However, a sample of 25 people taken recently showed an average income of $34,665 with a standard deviation of $3200. Is the government’s estimate too low? Conduct a significance test to see if the true mean is more than the reported average by the government. Use α=0.05.

(a) State the null and alternative hypothesis.

(b) Calculate the test statistic.

(d) Make a decision at the 0. 05 significance level to reject Ho or fail to reject Ho.

(e) Write your conclusion in the context of the claim.

Q2) A drug manufacturer claims that fewer than 10% of patients who take its new drug for treating Alzheimer’s disease will experience nausea. In a random sample of 500 patients, 47 experienced nausea. Perform a significance test at the 5% significance level to test this claim.

(a) State the null and alternative hypothesis.

(b) Calculate the test statistic.

(d) Make a decision at the 0. 05 significance level to reject Ho or fail to reject Ho.

(e) Write your conclusion in the context of the claim.

Solutions

Expert Solution

orchestra answered 2 years ago

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