HW 3 with Solutions

# HW 3 with Solutions - MGMT 305 Homework 3: Answer Key...

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MGMT 305 Homework 3: Answer Key (5pts) 1. a. The Type I error is rejecting H 0 when it is true. In this case, this error occurs if the researcher concludes that the mean newspaper-reading time for individuals in management positions is greater than the national average of 8.6 minutes when in fact it is not. (2.5pts) b. The Type II error is accepting H 0 when it is false. In this case, this error occurs if the researcher concludes that the mean newspaper-reading time for individuals in management positions is less than or equal to the national average of 8.6 minutes when in fact it is greater than 8.6 minutes. (2.5pts) (10pts) 2. a. H 0 : μ = 5600 H a : 5600 (5pts) b. Degrees of freedom = n – 1 = 24 (10pts) Because t < 0, p -value is two times the upper tail area Using t table: area in lower tail is between .01 and .025; therefore, p -value is between .02 and .05. Exact p -value corresponding to t = 2.26 is .0332 p -value < .05; reject H 0 . The mean diamond price in New York City differs.

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## This note was uploaded on 12/06/2011 for the course MGMT 305 taught by Professor Priya during the Fall '08 term at Purdue.

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HW 3 with Solutions - MGMT 305 Homework 3: Answer Key...

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