Exam 9: Fundamentals of Hypothesis Testing: One-Sample Tests

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.She would now like to determine whether or not the mean age of her customers is greater than 30.If so, she plans to alter the entertainment to appeal to an older crowd.If not, no entertainment changes will be made.The appropriate hypotheses to test are:

SCENARIO 9-1 Microsoft Excel was used on a set of data involving the number of defective items found in a random sample of 46 cases of light bulbs produced during a morning shift at a plant.A manager wants to know if the mean number of defective bulbs per case is greater than 20 during the morning shift.She will make her decision using a test with a level of significance of 0.10.The following information was extracted from the Microsoft Excel output for the sample of 46 cases: $n = 46 ;$ Arithmetic Mean $= 28.00 ;$ Standard Deviation $= 25.92 ;$ Standard Error $= 3.82 ;$ Null Hypothesis: $H _ { 0 } : \mu \leq 20 ; \alpha = 0.10 ; \mathrm { df } = 45 ; T$ Test Statistic $= 2.09$ ; One-Tail Test Upper Critical Value $= 1.3006 ; p$ -value $= 0.021 ;$ Decision $=$ Reject. -Referring to Scenario 9-1, the evidence proves beyond a doubt that the mean number of defective bulbs per case is greater than 20 during the morning shift.

Suppose we wish to test H0: $\mu$$\le$ 47 versus H1: $\mu$ > 47.What will result if we conclude that the mean is greater than 47 when its true value is really 52?

SCENARIO 9-1 Microsoft Excel was used on a set of data involving the number of defective items found in a random sample of 46 cases of light bulbs produced during a morning shift at a plant.A manager wants to know if the mean number of defective bulbs per case is greater than 20 during the morning shift.She will make her decision using a test with a level of significance of 0.10.The following information was extracted from the Microsoft Excel output for the sample of 46 cases: $n = 46 ;$ Arithmetic Mean $= 28.00 ;$ Standard Deviation $= 25.92 ;$ Standard Error $= 3.82 ;$ Null Hypothesis: $H _ { 0 } : \mu \leq 20 ; \alpha = 0.10 ; \mathrm { df } = 45 ; T$ Test Statistic $= 2.09$ ; One-Tail Test Upper Critical Value $= 1.3006 ; p$ -value $= 0.021 ;$ Decision $=$ Reject. -Referring to Scenario 9-1, the manager can conclude that there is sufficient evidence to show that the mean number of defective bulbs per case is greater than 20 during the morning shift with no more than a 5% probability of incorrectly rejecting the true null hypothesis.

SCENARIO 9-7 A major home improvement store conducted its biggest brand recognition campaign in the company's history.A series of new television advertisements featuring well-known entertainers and sports figures were launched.A key metric for the success of television advertisements is the proportion of viewers who "like the ads a lot".A study of 1,189 adults who viewed the ads reported that 230 indicated that they "like the ads a lot." The percentage of a typical television advertisement receiving the "like the ads a lot" score is believed to be 22%.Company officials wanted to know if there is evidence that the series of television advertisements are less successful than the typical ad at a 0.01 level of significance. -Referring to Scenario 9-7, what critical value should the company officials use to determine the rejection region?

SCENARIO 9-3 An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250 W.From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W.A consumer group has decided to try to discover if the claim appears true.They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W. -Referring to Scenario 9-3, the population of interest is

Which of the following would be an appropriate null hypothesis?

SCENARIO 9-2 A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the person dresses.Suppose in actuality that if someone is a business major, he can correctly identify that person as a business major 87% of the time.When a person is an agriculture major, the student will incorrectly identify that person as a business major 16% of the time.Presented with one person and asked to identify the major of this person (who is either a business or an agriculture major), he considers this to be a hypothesis test with the null hypothesis being that the person is a business major and the alternative that the person is an agriculture major. -Referring to Scenario 9-2, what is the power of the test?

A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75.An auditor selects a random sample of 100 accounts and finds that the mean owed is $83.40 with a sample standard deviation of $23.65.If you wanted to test whether the mean balance is different from $75 and decided to reject the null hypothesis, what conclusion could you reach?

SCENARIO 9-3 An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250 W.From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W.A consumer group has decided to try to discover if the claim appears true.They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W. -Referring to Scenario 9-3, the null hypothesis will be rejected at 1%level of significance.

SCENARIO 9-2 A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the person dresses.Suppose in actuality that if someone is a business major, he can correctly identify that person as a business major 87% of the time.When a person is an agriculture major, the student will incorrectly identify that person as a business major 16% of the time.Presented with one person and asked to identify the major of this person (who is either a business or an agriculture major), he considers this to be a hypothesis test with the null hypothesis being that the person is a business major and the alternative that the person is an agriculture major. -Referring to Scenario 9-2, what is the "actual confidence coefficient"?

If a researcher rejects a false null hypothesis, she has made a decision.

The symbol for the level of significance of a statistical test is

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.She would now like to determine whether or not the mean age of her customers is greater than 30.If so, she plans to alter the entertainment to appeal to an older crowd.If not, no entertainment changes will be made.Suppose she found that the sample mean was 30.45 years and the sample standard deviation was 5 years.If shewants to have a level of significance at 0.01 what conclusion can she make?

SCENARIO 9-5 A bank tests the null hypothesis that the mean age of the bank's mortgage holders is less than or equal to 45 years, versus an alternative that the mean age is greater than 45 years.They take a sample and calculate a p-value of 0.0202. -Referring to Scenario 9-5, the null hypothesis would be rejected at a significance level of $\alpha$ = 0.01.

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.She would now like to determine whether or not the mean age of her customers is greater than 30.If so, she plans to alter the entertainment to appeal to an older crowd.If not, no entertainment changes will be made.Suppose she found that the sample mean was 30.45 years and the sample standard deviation was 5 years.What is the p-value associated with the test statistic?

SCENARIO 9-9 The president of a university claimed that the entering class this year appeared to be larger than the entering class from previous years, but their mean SAT score is lower than previous years.He took a sample of 20 of this year's entering students and found that their mean SAT score is 1,501 with a standard deviation of 53.The university's record indicates that the mean SAT score for entering students from previous years is 1,520.He wants to find out if his claim is supported by the evidence at a 5% level of significance. -Referring to Scenario 9-9, state the alternative hypothesis for this study.