In: Finance
Consider the following hypothesis test:
H 0: 50
H a: > 50
A sample of 55 is used and the population standard deviation is 8. Use the critical value approach to state your conclusion for each of the following sample results. Use = .05.
With = 52.5, what is the value of the test statistic
(to 2 decimals)?
Can it be concluded that the population mean is greater than
50?
SelectYesNoItem 2
b. With = 51, what is the value of the test statistic
(to 2 decimals)?
Can it be concluded that the population mean is greater than
50?
SelectYesNoItem 4
c. With = 51.8, what is the value of the test
statistic (to 2 decimals)?
Can it be concluded that the population mean is greater than
50?
SelectYesNoItem 6
H0: mean <= 50
H1: mean > 50
sample size (n) = 55; standard deviation (sd) = 8; alpha = 0.05;
a). x = 52.5
z-value = (x - mean)/sd/n^0.5
= (52.5 - 50)/(8/55^0.5) = 2.32 (Test statistic)
P-value = Probability (z > 2.32) = 1 - Probability (z < 2.32) = 1 - 0.9898 = 0.0102
This p-value is less than alpha so so H0 is rejected. Yes, it can be concluded that the population mean is greater than 50.
b). x = 51
z-value = (51-50)/(8/55^0.5) = 0.93 (Test statistic)
p-value = Probability(z > 0.93) = 1 - Probability(z < 0.93) = 1 - 0.8238 = 0.1762
p-value is greater than alpha so H0 is accepted. No, it cannot be concluded that the population mean is greater than 50.
c). x = 51.8
z-value = (51.8-50)/(8/55^0.5) = 1.67 (Test statistic)
p-value = Probability(z > 1.67) = 1 - Probability(z < 1.67) = 1 - 0.9525 = 0.0475
p-value is less than alpha so H0 is rejected. Yes, it can be concluded that the population mean is greater than 50.