Econ 203 Hmwk 2 & 3 (Final Answers)

Econ 203 Hmwk 2 & 3 (Final Answers) - Graded...

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Graded Homework 2 You have submitted this Homework 5 times (including this time). You may submit this Homework a total of 40 times and receive full credit. The first question is similar to one of the questions on the last review. Questions 2-7 cover practice problems from pages 36-39 in your course packet. 1. Question #1 Suppose that the population mean of firm size in Urbana-Champaign is 25 employees and the standard deviation is 5. Your sample size is 1. The mean of the sampling distribution of the sample mean is 25 and the standard deviation is 5 while the mean of the standardized distribution is 0 and the corresponding standard deviation is 1 . 2. Now suppose the parameters of the population are the same, but your sample size is 100 . The mean of the sampling distribution of the sample mean is 25 and the standard deviation is .5 while the mean of the standardized distribution is 0 and the corresponding standard deviation is 1 3. Now suppose the parameters of the population are the same, but your sample size is 2500 . The mean of the sampling distribution of the sample mean is 25 and the standard deviation is . 1 while the mean of the standardized distribution is 0 and the corresponding standard deviation is 1 . You received a raw score of 92% on this question. Question #2 This question is based on example 1 on page 36 (slide 16) of your course packet The owners of Johnny Jims claim that their stores average $875,000 in annual sales. You used this information in deciding to open a store. Your store however has not come even close to these annual sales. You want to prove that the figues given to you were misleading. You collect annual sales figures from 70 randomly selected stores. The average in your sample turns out to be $856,000, with a standard deviation of $24,000. What is the relevant point estimate? 856000
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What is the value of the test statistic? -6.6231 This test statistic has A standard normal distribution A t distribution with 69 degrees of freedom A t distribution with 70 degrees of freedom A normal distribution A t distribution with 68 degrees of freedom What is the p-value for this test? 3.17755E-09 = 3.17755e-09 Allowing for a 5% chance of a Type I error, what is your conclusion for this test? Reject the null hypothesis and conclude that the numbers were misleading Reject the null hypothesis and conclude that the numbers were not misleading Do not reject the null hypothesis and conclude that the numbers were not misleading Do not reject the null hypothesis and conclude that the numbers were misleading Suppose that all of a sudden you find out from your friend, who is in management of a similar franchise, that you can count on the standard deviation of sales being $28,000. Which steps would you undertake to carry out the same test as above but with this new piece of information? You would: use a t distribution with 69 degrees of freedom calculate a t statistic fail to reject the null hypothesis
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This note was uploaded on 07/23/2010 for the course ECON 203 taught by Professor Petry during the Spring '08 term at University of Illinois at Urbana–Champaign.

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Econ 203 Hmwk 2 & 3 (Final Answers) - Graded...

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