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

SCENARIO 9-11-A You are the quality control manager of a water bottles company. One of the biggest complaints in the past years has been the breakage and, hence, the concern on the durability of the connector between the lid and the bottle which many users use as a handle for the bottles. To collect evidence before implementing any modification to the production process, your department has subjected 50 water bottles to a durability test and the following data on the number of times the handles have been used to lift the bottles before they break are contained in the file Scenario9-11-DataA.XLSX. 1495 1499 1502 1500 1491 1498 1498 1495 1488 1516 1513 1486 1504 1503 1493 1504 1489 1500 1495 1499 1501 1507 1511 1496 1486 1497 1510 1504 1493 1482 1511 1502 1520 1514 1486 1514 1500 1505 1512 1500 1504 1498 1503 1514 1474 1489 1488 1506 1517 1490 Assume that the number of times the handles have been used to lift the bottles before they break follows a normal distribution. You want to test to see if there is enough evidence that the mean number of times the handles have been used to lift the bottles before they break is more than 1500. -Referring to Scenario 9-11-A, you can conclude that there is enough evidence that the mean number of times the handles have been used to lift the bottles before they break is no more than 1500 when allowing for a 1% probability of committing a Type I error.

SCENARIO 9-8 One of the biggest issues facing e-retailers is the ability to turn browsers into buyers. This is measured by the conversion rate, the percentage of browsers who buy something in their visit to a site. The conversion rate for a company's website was 10.1%. The website at the company was redesigned in an attempt to increase its conversion rates. A sample of 200 browsers at the redesigned site was selected. Suppose that 24 browsers made a purchase. The company officials would like to know if there is evidence of an increase in conversion rate at the 5% level of significance. -Referring to Scenario 9-8, the parameter the company officials is interested in is:

SCENARIO 9-8 One of the biggest issues facing e-retailers is the ability to turn browsers into buyers. This is measured by the conversion rate, the percentage of browsers who buy something in their visit to a site. The conversion rate for a company's website was 10.1%. The website at the company was redesigned in an attempt to increase its conversion rates. A sample of 200 browsers at the redesigned site was selected. Suppose that 24 browsers made a purchase. The company officials would like to know if there is evidence of an increase in conversion rate at the 5% level of significance. -Referring to Scenario 9-8, the null hypothesis will be rejected if the test statistic is

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, if these data were used to perform a two-tail test, the p-value would be 0.1254.

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

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 9-7 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 (i.e. if there is evidence that the population proportion of "like the ads a lot" for the company's ads is less than 0.22) at a 0.01 level of significance. -Referring to Scenario 9-7, the null hypothesis will be rejected if the test statistic is

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 $\alpha$ = 0.05.

The symbol for the confidence coefficient of a statistical test is a) $\alpha$ . b) $1 - \alpha$ . c) $\beta$ . d) $1 - \beta$ .

If, as a result of a hypothesis test, you reject the null hypothesis when it is false, then you have committed

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, the president can conclude that there is sufficient evidence to show that the mean SAT score of the entering class this year is lower than previous years with no more than a 10% probability of incorrectly rejecting the true null hypothesis.

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. -The smaller the p-value, the stronger is the evidence against the null hypothesis.

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, the lowest level of significance at which the null hypothesis can still be rejected is ______.

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 (i.e. if there is evidence that the population proportion of "like the ads a lot" for the company's ads is less than 0.22) at a 0.01 level of significance. -Referring to Scenario 9-7, the largest level of significance at which the null hypothesis will not be rejected is ______.

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 (i.e. if there is evidence that the population proportion of "like the ads a lot" for the company's ads is less than 0.22) at a 0.01 level of significance. -Referring to Scenario 9-7, the lowest level of significance at which the null hypothesis can be rejected is ______.

SCENARIO 9-6 The quality control engineer for a furniture manufacturer is interested in the mean amount of force necessary to produce cracks in stressed oak furniture. She performs a two-tail test of the null hypothesis that the mean for the stressed oak furniture is 650. The calculated value of the Z test statistic is a positive number that leads to a p-value of 0.080 for the test. -Referring to Scenario 9-6, suppose the engineer had decided that the alternative hypothesis to test was that the mean was greater than 650. Then if the test is performed with a level of significance of 0.05, the null hypothesis would be rejected.

If a researcher does not reject a false null hypothesis, she has made a _______error.

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 were to conduct a test to determine whether the auditor should conclude that there is Evidence that the mean balance is different from $75, which test would you use?

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 (i.e. if there is evidence that the population proportion of "like the ads a lot" for the company's ads is less than 0.22) at a 0.01 level of significance. -Referring to Scenario 9-7, the company officials can conclude that there is sufficient evidence to show that the series of television advertisements are less successful than the typical ad using a level of significance of 0.05.

A pizza chain is considering opening a new store in an area that currently does not have any such stores. The chain will open if there is evidence that more than 5,000 of the 20,000 households in The area have a favorable view of its brain. It conducts a telephone poll of 300 randomly selected Households in the area and finds that 96 have a favorable view. State the test of hypothesis that is Of interest to the pizza chain. a) $H _ { 0 } : \pi \leq 0.32$ versus $H _ { 1 } : \pi > 0.32$ b) $H _ { 0 } : \pi \leq 0.25$ versus $H _ { 1 } : \pi > 0.25$ c) $H _ { 0 } : \pi \leq 5,000$ versus $H _ { 1 } : \pi > 5,000$ d) $H _ { 0 } : \mu \leq 5,000$ versus $H _ { 1 } : \mu > 5,000$