{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

fin05sol

# fin05sol - Suggested solution Question 1(a The Hypothesis...

This preview shows pages 1–2. Sign up to view the full content.

1 Suggested solution Question 1: (a) The Hypothesis statement is H 0 : μ <=23 vs H 1 μ >23. Naturally we need to assume that that either the data are normally distributed in which case we can use a t-test or assume that the CLT applies. That is n=56 is large enough and we can use the Z-test. Using the t-test approach the test statistic is T=sqrt(56)(23.5-23)/10.2=.367 There are 55 degrees of freedom and we can use the normal table to find the critical value of 1.645 at alpha =.05. In this case since .367<1.645 we cannot reject the null hypothesis and must conclude that the evidence indicates that their claim is false. (b) The 95% confidence interval is approximately 23.5+-2.67 (c) To find A, solve the equation sqrt(56)(23.5-A)/10.2 >=1.645, the solution is A<=21.258. Hence set A=21. Note: Question (c) can be adjusted for different values of the standard deviation. Question 2: (a) Using the formula for the differences where the population variances are assumed equal but unknown we first find 2K=16.14+6.14 or K=11.14, but K=T .025 SE, With 10 degrees of freedom T .025 =2.228, hence the Standard Error is 5

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}