Example 7.2.1
A simple random sample of 10 people from a certain population has a mean age of 27. Can we conclude that the mean age of the population is not 30? The variance is known to be 20. Let alpha = .05.
[Note: "Yes we can, if..." A way to help solve this type of problem is to answer "Yes we can, if..." In this case the question is, "Can we conclude that the mean age of the population is not 30?" Answer, "Yes we can, if we can reject the null hypothesis that it is 30." Responding to problems the same way all the time will lead to less confusion and less errors. ]
(1) Data
n = 10 sigma-squared = 20
x-bar= 27 alpha = .05
(2) Assumptions
simple random sample
normally distributed population
(3) Hypotheses
H0 : mu = 30
HA : mu not equal to30
(4) Test statistic
As the population variance is known, we use z as the test statistic.
z-score formula
(a) Distribution of test statistic
If the assumptions are correct and H0 is true, the test statistic follows the standard normal distribution. Therefore, we calculate a z score and use it to test the hypothesis.
(b) Decision rule
Reject H0 if the z value falls in the rejection region. Fail to reject H0 if it falls in the nonrejection region.
normal curve
Because of the structure of H0 it is a two tail test. Therefore, reject H0 if z less than or equal to -1.96 or z greater than or equal to 1.96.
(5) Calculation of test statistic
calculation
(6) Statistical decision
We reject the null hypothesis because z = -2.12 which is in the rejection region. The value is significant at the .05 level.
(7) Conclusion
We conclude that mu is not 30.
p = .0340
A z value of -2.12 corresponds to an area of .0170. Since there are two parts to the rejection region in a two tail test, the p value is twice this which is .0340.
A problem like this can also be solved using a confidence interval. A confidence interval will show that the calculated value of z does not fall within the boundaries of the interval. It will not, however, give a probability.
Confidence interval
confidence interval calculation
Example 7.2.1
A simple random sample of 10 people from a certain population has a mean age of 27. Can we conclude that the mean age of the population is not 30? The variance is known to be 20. Let alpha = .05.
[Note: "Yes we can, if..." A way to help solve this type of problem is to answer "Yes we can, if..." In this case the question is, "Can we conclude that the mean age of the population is not 30?" Answer, "Yes we can, if we can reject the null hypothesis that it is 30." Responding to problems the same way all the time will lead to less confusion and less errors. ]
(1) Data
n = 10 sigma-squared = 20
x-bar= 27 alpha = .05
(2) Assumptions
simple random sample
normally distributed population
(3) Hypotheses
H0 : mu = 30
HA : mu not equal to30
(4) Test statistic
As the population variance is known, we use z as the test statistic.
z-score formula
(a) Distribution of test statistic
If the assumptions are correct and H0 is true, the test statistic follows the standard normal distribution. Therefore, we calculate a z score and use it to test the hypothesis.
(b) Decision rule
Reject H0 if the z value falls in the rejection region. Fail to reject H0 if it falls in the nonrejection region.
normal curve
Because of the structure of H0 it is a two tail test. Therefore, reject H0 if z less than or equal to -1.96 or z greater than or equal to 1.96.
(5) Calculation of test statistic
calculation
(6) Statistical decision
We reject the null hypothesis because z = -2.12 which is in the rejection region. The value is significant at the .05 level.
(7) Conclusion
We conclude that mu is not 30.
p = .0340
A z value of -2.12 corresponds to an area of .0170. Since there are two parts to the rejection region in a two tail test, the p value is twice this which is .0340.
A problem like this can also be solved using a confidence interval. A confidence interval will show that the calculated value of z does not fall within the boundaries of the interval. It will not, however, give a probability.
Confidence interval
confidence interval calculation
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