Question
1. Explain Type I and Type II errors. 2. Explain what a p-value is, and explain how it is used to test a hypothesis. 3.
1. Explain Type I and Type II errors.
2. Explain what a p-value is, and explain how it is used to test a hypothesis.
3. Fully explain the steps in hypothesis testing using the p-value method.
4. How do we decide whether to use a z test or a t test in hypothesis testing?
5. Work through this hypothesis test using the prompts.
A sample of 17 account balances of credit company showed a mean of customer balance of $4,450, but the marketing manager claimed that the mean valance for the population was $4,325. The marketing manager did NOT have the population standard deviation, but the sample standard deviation was found to be $500. Use the p-value approach to conduct a full hypothesis test (all steps) that can be used to determine whether the mean of all account balances is significantly difference from $4,325. Let = .05.
To help you go through the steps of hypothesis testing, follow these prompts:
The null hypothesis is
The alternative hypothesis is
I will use a (choose 1: t / z) in my formula because
I have calculated the value of t (or z) to be
I have used t (or z) to get the value of p (most likely from a chart or computer printout). My p value is
Alpha, which is given in the problem, is
When I compared p to alpha, p is (choose 1: greater than/less than) alpha.
Because of this, I know I should (choose 1: reject/fail to reject) my null hypothesis.
Choose one: The mean balance is different than $4325 / The mean balance is NOT different than $4325.
6. Work through this hypothesis test using each step of hypothesis testing. You may want to borrow the steps from the previous problem.
A sample of 51 homes for sale in ABC City showed a mean asking price of $258,000, but the city claimed that the mean asking price for the population was $249,000. The population standard deviation of all homes for sale was $19,000. Use the p-value approach to conduct a full hypothesis (all steps - follow the guidance in the last problem) that can be used to determine whether the mean asking price is significantly greater than $249,000. Let =. 05.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started