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On a state driver’s test, about 40% pass the test on the first try. We want to test if more than 40% pass on the first try. Fill in the correct symbol (=, ≠, ≥,<, ≤,>) for the null and alternative hypotheses.

  1. H 0 : p __ 0.40
  2. H a : p __ 0.40

  1. H 0 : p = 0.40
  2. H a : p >0.40
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Collaborative exercise

Bring to class a newspaper, some news magazines, and some Internet articles . In groups, find articles from which your group can write null and alternative hypotheses. Discuss your hypotheses with the rest of the class.

Chapter review

In a hypothesis test , sample data is evaluated in order to arrive at a decision about some type of claim. If certain conditions about the sample are satisfied, then the claim can be evaluated for a population. In a hypothesis test, we:

  1. Evaluate the null hypothesis , typically denoted with H 0 . The null is not rejected unless the hypothesis test shows otherwise. The null statement must always contain some form of equality (=, ≤ or ≥)
  2. Always write the alternative hypothesis , typically denoted with H a or H 1 , using less than, greater than, or not equals symbols, i.e., (≠,>, or<).
  3. If we reject the null hypothesis, then we can assume there is enough evidence to support the alternative hypothesis.
  4. Never state that a claim is proven true or false. Keep in mind the underlying fact that hypothesis testing is based on probability laws; therefore, we can talk only in terms of non-absolute certainties.

Formula review

H 0 and H a are contradictory.

If H o has: equal (=) greater than or equal to (≥) less than or equal to (≤)
then H a has: not equal (≠) or greater than (>) or less than (<) less than (<) greater than (>)

If α p -value, then do not reject H 0 .

If α > p -value, then reject H 0 .

α is preconceived. Its value is set before the hypothesis test starts. The p -value is calculated from the data.

You are testing that the mean speed of your cable Internet connection is more than three Megabits per second. What is the random variable? Describe in words.

The random variable is the mean Internet speed in Megabits per second.

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You are testing that the mean speed of your cable Internet connection is more than three Megabits per second. State the null and alternative hypotheses.

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The American family has an average of two children. What is the random variable? Describe in words.

The random variable is the mean number of children an American family has.

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The mean entry level salary of an employee at a company is $58,000. You believe it is higher for IT professionals in the company. State the null and alternative hypotheses.

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A sociologist claims the probability that a person picked at random in Times Square in New York City is visiting the area is 0.83. You want to test to see if the proportion is actually less. What is the random variable? Describe in words.

The random variable is the proportion of people picked at random in Times Square visiting the city.

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A sociologist claims the probability that a person picked at random in Times Square in New York City is visiting the area is 0.83. You want to test to see if the claim is correct. State the null and alternative hypotheses.

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In a population of fish, approximately 42% are female. A test is conducted to see if, in fact, the proportion is less. State the null and alternative hypotheses.

  1. H 0 : p = 0.42
  2. H a : p <0.42

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Suppose that a recent article stated that the mean time spent in jail by a first–time convicted burglar is 2.5 years. A study was then done to see if the mean time has increased in the new century. A random sample of 26 first-time convicted burglars in a recent year was picked. The mean length of time in jail from the survey was 3 years with a standard deviation of 1.8 years. Suppose that it is somehow known that the population standard deviation is 1.5. If you were conducting a hypothesis test to determine if the mean length of jail time has increased, what would the null and alternative hypotheses be? The distribution of the population is normal.

  1. H 0 : ________
  2. H a : ________

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A random survey of 75 death row inmates revealed that the mean length of time on death row is 17.4 years with a standard deviation of 6.3 years. If you were conducting a hypothesis test to determine if the population mean time on death row could likely be 15 years, what would the null and alternative hypotheses be?

  1. H 0 : __________
  2. H a : __________
  1. H 0 : μ = 15
  2. H a : μ ≠ 15
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The National Institute of Mental Health published an article stating that in any one-year period, approximately 9.5 percent of American adults suffer from depression or a depressive illness. Suppose that in a survey of 100 people in a certain town, seven of them suffered from depression or a depressive illness. If you were conducting a hypothesis test to determine if the true proportion of people in that town suffering from depression or a depressive illness is lower than the percent in the general adult American population, what would the null and alternative hypotheses be?

  1. H 0 : ________
  2. H a : ________

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References

Data from the National Institute of Mental Health. Available online at http://www.nimh.nih.gov/publicat/depression.cfm.

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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