Rejecting the null hypothesis for a certain commodity

Assignment Help Basic Statistics
Reference no: EM131694433

Question: A certain commodity is known to have a price that is stable through time and does not change according to any known trend. Price, however, does change from day to day in a random fashion. If the price is at a certain level one day, it is as likely to be at any level the next day within some probability bounds approximately given by a normal distribution. The mean daily price is believed to be $14.25. To test the hypothesis that the average price is $14.25 versus the alternative hypothesis that it is not $14.25, a random sample of 16 daily prices is collected. The results are x¯ = $16.50 and s = $5.8. Using α = 0.05, can you reject the null hypothesis?

Reference no: EM131694433

Questions Cloud

What is the appropriate test statistic in the given case : The population is assumed to be normally distributed. What is the appropriate test statistic in this case? Conduct the test and state your conclusion.
How new process affects the average life of the batteries : A new chemical process is introduced by Duracell in the production of lithium-ion batteries. For batteries produced by the old process.
What is its acceleration : During takeoff, an airplane goes from 0 to 78 m/s in 11 s.
Discuss effective political and military leadership : Explain how the north won the war by considering its material resources, military strategy, and effective political and military leadership
Rejecting the null hypothesis for a certain commodity : A certain commodity is known to have a price that is stable through time and does not change according to any known trend.
Calculate the total profits for the most profitable customer : Calculate the total profits for the most profitable customers - Determine the total and per-unit costs of manufacturing the Gas Cooker
What would be the total time : What would be the total time it would take to reach a speed of 52 m/s?
Implementing changes in displays of goods and order : The store's management recently implemented some changes in displays of goods, order within aisles, and other changes, and it now wants to know whether average.
Analyze why the work was viewed as controversial at the time : Analyze why the work was viewed as controversial at the time. Explain how the art you chose prompted social change or awareness.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Explain how this relationship is useful for solving binomial

The binomial distribution approaches normality as N increases. Explain how this relationship is useful for solving binomial problems involving N > 20. What are the advantages and disadvantages of this approach?

  Sketch the results of a sensitivity analysis on p

Using the template below, sketch the results of a sensitivity analysis on P(Deal Succeeds) for a risk-neutral decision maker. How high does P(Deal Succeeds) have to before before the decision maker could engage in the business deal?

  What is the distribution with a mean of 0

Which of the following is NOT true regarding the normal probability distribution.

  Controversy surrounding genetically modified crops

Explain your response to the following completely and in easy to understand language. There is controversy surrounding genetically modified crops.

  A bell shaped distribution

For example, why do you think women's heights are distributed in this way rather than, for instance, being equally spread out from about 5 feet tall to 6 feet tall?

  Economic and cultural life of medieval

Characterize the significance of the Black Death's impacts on the economic and cultural life of medieval Europe.

  Identify best unbiased estimate of the concerned parameter

Find the asymptotic distribution of the MLE of the indicated parameter and find formulas for approximate standard errors of the MLE.

  What criterion be used for rejecting null hypothesis

What criterion would be used for rejecting the null hypothesis? Assume that the standard deviation, σ, of the population is known.

  To that end they hoped to achieve a reduction to 20 by

question in 1999 lehman brothers estimated that 48 of its investment bank traders took diverse forms of soft drugs.

  Construct a 90 confidence interval to estimate the average

the average selling price of blackberry smart phones purchased by a random sample of 35 customers in 2010 was 311.

  A write down the design matrix b what is are the design

question consider the following experimentrunconditiony1ab12b63ad24abcd75bcd86d87ac128c10a. write down the design

  Distribution of normal probability

Micron Electronics makes both desktop and laptop personal computers that they sell directly to customers by phone or over the Internet.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd