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Unformatted text preview: = $400. In 2008, a manager selected a random sample of 12 claims processed recently. The sample mean is $407 and the sample standard deviation is $6. We want to test at the .01 = level if now 400. a) Set up the null and alternative hypotheses. b) Calculate the test statistic c) Find the rejection point (critical value). d) Test the null hypothesis. e) Find the pvalue for your test. Solutions 2. a) 98.6 b) 5.54 c) 9 0.05 98.6 (5.54 / 10) (95.38,101.81) t i = d)not. Since the confidence interval does not include 105, 105 is outside the range of the upper limit. 3 a) : 400 : 400 a H H μ = b) 407 400 4.04 6 / 12 t= = c) 11 0.005 3.106 t = d) reject H , since 4.04>3.106 e) P value 2*(0.50.4990)< α...
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This note was uploaded on 04/18/2008 for the course ECON 302 taught by Professor Cui during the Spring '08 term at Ole Miss.
 Spring '08
 Cui
 Economics

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