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The data for a random sample of 10 paired observations is shown below.

PairSample from Population 1

(Observation 1)

Sample from Population 2 (Observation 2)
12345678910
19253152493459471751
24273653553466512055

a. If you wish to test whether these data are sufficient to indicate that the mean for population 2 is larger than that for population 1, what are the appropriate null and alternative hypotheses? Define any symbols you use.

b. Conduct the test, part a, usingα=.10.

c. Find a 90%confidence interval for μd. Interpret this result.

d. What assumptions are necessary to ensure the validity of this analysis?

Short Answer

Expert verified

A confidence interval is explained as the set of numbers seen in our sample for which we anticipate discovering the number that best represents the populace.

Step by step solution

01

Step-by-Step Solution Step 1: (a) State the null and alternate hypotheses

Let μ1and μ2be the means of populations 1 and 2, respectively, and μdbe the difference between the means of two populations.

Null Hypothesis (H0): There is no difference between the two population means.

H0:μd0(μ1μ20)

Alternate Hypothesis (H0): The mean of population 2 is larger than population 1.

Ha:μd<0(μ1μ2<0)

02

(b) Conduct the Test

d¯=dn=3710=3.7

sd=d2(d)2nn1=181(37)2109=44.19=2.2136

Here,n=10

So, the degree of freedom will be =n1=9

α=0.10

From the t-table, the critical value at 10%the level of significance with a degree of freedom 9 is 1.383.

t=d¯sdn=3.72.213610=5.29

|t|=5.29

Since5.29>1.383 so null hypothesis will be rejected. Therefore, it can be concluded that the mean of population 2 is larger than population 1.

03

(c) Form the confidence interval

Here, n=10

So, the degree of freedom will be =n1=9

α=0.10

From the t-table, the critical value at 10%the level of significance with a degree of freedom 9is role="math" localid="1652708493593" 1.383.

The margin of error is,

ME=tα/2(sdn)=(1.833)2.213610=1.2831

The Confidence Interval is,

CI=d¯±ME=(3.7)±(1.2831)=(4.98,2.42)

04

(d) State the assumption

  • A random sample of differences is selected from the target population of differences.
  • The population of differences has an approximately normal distribution.

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Most popular questions from this chapter

To compare the means of two populations, independent random samples of 400 observations are selected from each population, with the following results:

Sample 1

Sample 2

x¯1=5,275σ1=150

x¯2=5,240σ2=200

a. Use a 95%confidence interval to estimate the difference between the population means (μ1μ2). Interpret the confidence interval.

b. Test the null hypothesis H0:(μ1μ2)=0versus the alternative hypothesis Ha:(μ1μ2)0 . Give the significance level of the test and interpret the result.

c. Suppose the test in part b was conducted with the alternative hypothesis Ha:(μ1μ2)0 . How would your answer to part b change?

d. Test the null hypothesis H0:(μ1μ2)=25 versus Ha:(μ1μ2)25. Give the significance level and interpret the result. Compare your answer with the test conducted in part b.

e. What assumptions are necessary to ensure the validity of the inferential procedures applied in parts a–d?

Corporate sustainability of CPA firms. Refer to the Business and Society (March 2011) study on the sustainability behaviors of CPA corporations, Exercise 2.23 (p. 83). Recall that the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) was obtained for each of 992 senior managers at CPA firms. The accompanying Minitab printout gives the mean and standard deviation for the level of support variable. It can be shown that level of support is approximately normally distributed.

a. Find the probability that the level of support for corporate sustainability of a randomly selected senior manager is less than 40 points.

b. Find the probability that the level of support for corporate sustainability of a randomly selected senior manager is between 40 and 120 points.

c. Find the probability that the level of support for corporate sustainability of a randomly selected senior manager is greater than 120 points.

d. One-fourth of the 992 senior managers indicated a level of support for corporate sustainability below what value?

Descriptive Statistics: Support

Variables

N

Mean

StDev

Variance

Minimum

Maximum

Range

Support

992

67.755

26.871

722.036

0.000

155.000

155.000

Homework assistance for accounting students. How much assistance should accounting professors provide students for completing homework? Is too much assistance counterproductive? These were some of the questions of interest in a Journal of Accounting Education (Vol. 25, 2007) article. A total of 75 junior-level accounting majors who were enrolled in Intermediate Financial Accounting participated in an experiment. All students took a pretest on a topic not covered in class; then, each was given a homework problem to solve on the same topic. However, the students were randomly assigned different levels of assistance on the homework. Some (20 students) were given the completed solution, some (25 students) were given check figures at various steps of the solution, and the rest (30 students) were given no help. After finishing the homework, each student was given a posttest on the subject. One of the variables of interest to the researchers was the knowledge gain (or test score improvement), measured as the difference between the posttest and pretest scores. The sample means knowledge gains for the three groups of students are provided in the table.

a. The researchers theorized that as the level of homework assistance increased, the test score improvement from pretest to post test would decrease. Do the sample means reported in the table support this theory?

b. What is the problem with using only the sample means to make inferences about the population mean knowledge gains for the three groups of students?

c. The researchers conducted a statistical test of the Hypothesis to compare the mean knowledge gain of students in the "no solutions" group with the mean knowledge gain of students in the "check figures" group. Based on the theory, part a sets up the null and alternative hypotheses for the test.

d. The observed significance level of the t-test of the partc was reported as8248 Using α=.05, interpret this result.

e. The researchers conducted a statistical test of the hypothesis to compare the mean knowledge gain of students in the "completed solutions" group with the mean knowledge gain of students in the "check figures" group. Based on the theory, part a sets up the null and alternative hypotheses for the test.

f. The observed significance level of the role="math" localid="1652694732458" t-test of part e was reported as 1849. Using α=.05, interpret this result.

g. The researchers conducted a statistical test of the Hypothesis to compare the mean knowledge gain of students in the "no solutions" group with the mean knowledge gain of students in the "completed solutions" group. Based on the theory, part a sets up the null and alternative hypotheses for the test.

h. The observed significance level of the t-test of the part wasg reported as2726. Using role="math" localid="1652694677616" α=.05, interpret this result.

A paired difference experiment yielded ndpairs of observations. In each case, what is the rejection region for testing H0d>2?

a. nd=12,α=.05

b.nd=24,α=.10

c.nd=4,α=.025

d.nd=80,α=.01

Suppose you want to estimate the difference between two population means correct to within 1.8 with a 95% confidence interval. If prior information suggests that the population variances are approximately equal to σ12=σ22=14 and you want to select independent random samples of equal size from the populations, how large should the sample sizes n1, and n2, be?

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