Formulate the null and alternative hypotheses

Assignment Help Mathematics

Reference no: EM13178934

The ACTION Paper Company employs a human resources manager who is given responsibility for employee benefits. There is a question about the mean annual dental expense per employee. The manager selects a random sample of 49 employee records for the past year and finds the following.

Sample Size: 49
Sample mean: $486
Sample standard deviation: $84

Does the sample data provide evidence to conclude that the mean annual dental expense per employee is less than $500 (using a = .10)? Use the hypothesis testing procedure outlined below.

a. Formulate the null and alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the rejection and nonrejection regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does this mean?
g. Determine the observed p-value for the hypothesis test and interpret this value. What does this mean?
h. Does this sample data provide evidence (with a = 0.10), that the mean annual dental expense per employee is less than $500?

Reference no: EM13178934

Questions Cloud

How many dog biscuits were in the box originally : Yankee found and ate three more than one half of the remaining biscuits. finally, murray ate three more than one half of the remaining biscuits. how many dog biscuits were in the box originally?

State what are the drawbacks for extending the therapy : While Xeloda works well, it is effective for colorectal tumors and liver cancer. What are the drawbacks for extending this therapy to other types of cancer?

Find the observed p-value for the hypothesis test : Does the sample data provide evidence to conclude that less than 28% of B&B's customers are women (using a = .01)? Use the hypothesis testing procedure outlined below.

Explain why soft selling is a successful signal : Soft Selling occurs when a buyer is skeptical of the quality or usefulness of a product or service. For example suppose you're trying to sell a company a new accounting system that will reduce costs by 10%. Instead of asking for a price you offer ..

Formulate the null and alternative hypotheses : Does this sample data provide evidence (with a = 0.10), that the mean annual dental expense per employee is less than $500?

Normal balance per the general ledger : Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.

State the problems affect the magnitude of kf : A student determined the Kf (f as lower subscript) of t-butyl alcohol using tap water instead of distilled or deionized water. Describe the problems that might have been encountered. How would these problems affect the magnitude of Kf?

How large a sample size will need to be selected : How large a sample size will need to be selected if we wish to have a 95% confidence interval that is accurate to within 1%.

Identify any one provision of the patriot act : Identify any one provision of the PATRIOT Act that is considered potentially unconstitutional. Explain the objection. Do you agree that the provision is unconstitutional? Why or why not?

User Account

All Pages