Reference no: EM131087083
Econ 310, Spring 2014- Week 10:
Problem 1- Reconsider the case of a new drug. Now we interchange the null and alternative hypotheses.
H0: The drug is safe.
H1: The drug is not safe.
Describe the Type I error and Type II error in this new test. Does this test better than the previous one?
Problem 2- Many Alpine ski centers base their projections of revenues and profits on the assumption that the average Alpine skier skis four times per year. To investigate the validity of this assumption, a random sample of 63 skiers is drawn and each is asked to report the number of times he or she skied the previous year. The average was 4.38 times per year. If we assume that the standard deviation is 2, can we infer at the 10% significance level that the assumption is wrong?
(1) Set the null and alternative hypotheses.
(2) Find the rejection region and calculate the test statistic. What is your conclusion?
(3) Calculate the 90% Confidence Interval(CI) of the population mean from the test statistic. Does the conclusion in (2) change if we use the CI for hypothesis testing?
Problem 3- A manufacturer of lightbulbs advertises that, on average, its long-life bulb will last more than 5,000 hours. To test the claim, a statistician took a random sample of 100 bulbs and measured the amount of time until each bulb burned out. The average lifespan of the lightbulbs was 4,880 hours. If we assume that the lifetime of this type of bulb has a standard deviation of 400 hours, can we conclude at the 5% significance level that the claim is true?
(1) Set the null and alternative hypotheses.
(2) Calculate the test statistic and find the rejection region. What is your conclusion?
(3) Calculate the p-value. Is your conclusion from the p-value the same with (2)?
Problem 4- A researcher formulated the following hypotheses. H0: µ = 200 and H1: µ < 200 and learned that x¯ = 190, n = 9, and σ = 50. (We assume that xi is normally distributed.)
(1) Compute the p-value of the test.
(2) Find the p-value for σ = 30 and σ = 10, respectively. Comment on your findings.
|
Calculate how much of each the consumer will demand
: Econ 522 - Economics of Law - Calculate the consumer's demand, and his utility, in the absence of government intervention - How much revenue does the government raise with this tax?
|
|
Form of communication
: The documentation you produce at work is intended as a form of communication. Explain what communication is and why it is important that the ideas/ information you communicate should be understood as they were intended (20-40 words)
|
|
Variety of audiences
: Consider the variety of audiences you might send correspondence to; explain why it is important to know who they are and what their skills and qualifications are. (25-75 words)
|
|
Calculate the probability of accepting the lot
: Consider the double-sampling plan for which both sample sizes are 50. The lot is accepted after the first sample if the number of defectives is at most 1, rejected if the number of defectives is at least 4, and rejected after the second sample if ..
|
|
Find the rejection region and calculate the test statistic
: Many Alpine ski centers base their projections of revenues and profits on the assumption that the average Alpine skier skis four times per year. Set the null and alternative hypotheses. Find the rejection region and calculate the test statistic. Wh..
|
|
Type of interpersonal skills
: Explain what type of interpersonal skills are required when providing a service to all customers (including those with specific needs) and why are they important.
|
|
Develop two audit control procedures
: The audit firm's lead and senior audit manager and firm partner, Scott Payne, CPA, has requested that you develop two audit/internal control procedures which address the following issues which emerged during the past three reviews of RPC.
|
|
Identify and use available opportunities
: How can organisational procedures help staff to identify and use available opportunities to handle customer complaints, promote and enhance services and products to customers? (50-100 words)
|
|
Develop a single-sample plan
: Develop a single-sample plan for which AQL = .02 and LTPD = .07 in the case α = .05, ß = .10. Once values of n and c have been determined, calculate the achieved values of a and b for the plan.
|