A6 - Weihan Ni A20252394 MBA 507 Decision Making Assignment...

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Weihan Ni A20252394 MBA 507 Decision Making Assignment 6 12.10 The conditions for a t-interval are not met. There is an outlier so high, $3000000, making the mean too high. The SE for the mean will be too high, and the interval will be too wide. 12.30 a) The hypothesis: H 0 :μ= 10%; H A :μ> 10% If this setting doesn’t work, there will be a Type II error that they don’t reject the null hypothesis while it is not true. Customers may be unhappy if there are more than 10% unpopped. b) To find out whether they have met their goal of less than 10% unpopped popcorn, a t- test need to be conducted comparing the sample mean with the expected value 10%. So, H 0 :μ= 10%; H A :μ> 10%. Then we have to determine whether the necessary assumptions to perform inference are satisfied. The independence assumption: the bags were selected randomly and we can assume that they are independent and representative of all popcorn bags. Nearly normal condition: the histogram is unimodal and without outliers.
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SE() = = = 1.286 t n-1 = = = -2.51 t 7 (53.1,)= t 7 (6.775,1.286) P-value=0.0203 this indicated that the sample mean is much less than the goal value of 10%. So the setting will meet the goal of less than 10% unpopped. 12.34 a) The Randomization condition : the 14 brands of yogurt are not randomly selected although we can assume that they can represent all brands of yogurt. 10% condition: the 14 brands of yogurt may not be less than 10% of all yogurt brands, we are not sure if there are 140 brands of yogurt. Independence assumption: the lack of randomization and question about 10% gives us
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This note was uploaded on 11/07/2011 for the course ECON 101 taught by Professor Johnson during the Spring '11 term at Sciences Po.

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A6 - Weihan Ni A20252394 MBA 507 Decision Making Assignment...

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