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Chapter review

The hypothesis test itself has an established process. This can be summarized as follows:

  1. Determine H 0 and H a . Remember, they are contradictory.
  2. Determine the random variable.
  3. Determine the distribution for the test.
  4. Draw a graph, calculate the test statistic, and use the test statistic to calculate the p -value. (A z -score and a t -score are examples of test statistics.)
  5. Compare the preconceived α with the p -value, make a decision (reject or do not reject H 0 ), and write a clear conclusion using English sentences.

Notice that in performing the hypothesis test, you use α and not β . β is needed to help determine the sample size of the data that is used in calculating the p -value. Remember that the quantity 1 – β is called the Power of the Test . A high power is desirable. If the power is too low, statisticians typically increase the sample size while keeping α the same.If the power is low, the null hypothesis might not be rejected when it should be.

Assume H 0 : μ = 9 and H a : μ <9. Is this a left-tailed, right-tailed, or two-tailed test?

This is a left-tailed test.

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Assume H 0 : μ ≤ 6 and H a : μ >6. Is this a left-tailed, right-tailed, or two-tailed test?

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Assume H 0 : p = 0.25 and H a : p ≠ 0.25. Is this a left-tailed, right-tailed, or two-tailed test?

This is a two-tailed test.

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Draw the general graph of a left-tailed test.

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Draw the graph of a two-tailed test.

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A bottle of water is labeled as containing 16 fluid ounces of water. You believe it is less than that. What type of test would you use?

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Your friend claims that his mean golf score is 63. You want to show that it is higher than that. What type of test would you use?

a right-tailed test

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A bathroom scale claims to be able to identify correctly any weight within a pound. You think that it cannot be that accurate. What type of test would you use?

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You flip a coin and record whether it shows heads or tails. You know the probability of getting heads is 50%, but you think it is less for this particular coin. What type of test would you use?

a left-tailed test

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If the alternative hypothesis has a not equals ( ≠ ) symbol, you know to use which type of test?

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Assume the null hypothesis states that the mean is at least 18. Is this a left-tailed, right-tailed, or two-tailed test?

This is a left-tailed test.

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Assume the null hypothesis states that the mean is at most 12. Is this a left-tailed, right-tailed, or two-tailed test?

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Assume the null hypothesis states that the mean is equal to 88. The alternative hypothesis states that the mean is not equal to 88. Is this a left-tailed, right-tailed, or two-tailed test?

This is a two-tailed test.

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References

Data from Amit Schitai. Director of Instructional Technology and Distance Learning. LBCC.

Data from Bloomberg Businessweek . Available online at http://www.businessweek.com/news/2011- 09-15/nyc-smoking-rate-falls-to-record-low-of-14-bloomberg-says.html.

Data from energy.gov. Available online at http://energy.gov (accessed June 27. 2013).

Data from Gallup®. Available online at www.gallup.com (accessed June 27, 2013).

Data from Growing by Degrees by Allen and Seaman.

Data from La Leche League International. Available online at http://www.lalecheleague.org/Law/BAFeb01.html.

Data from the American Automobile Association. Available online at www.aaa.com (accessed June 27, 2013).

Data from the American Library Association. Available online at www.ala.org (accessed June 27, 2013).

Data from the Bureau of Labor Statistics. Available online at http://www.bls.gov/oes/current/oes291111.htm.

Data from the Centers for Disease Control and Prevention. Available online at www.cdc.gov (accessed June 27, 2013)

Data from the U.S. Census Bureau, available online at http://quickfacts.census.gov/qfd/states/00000.html (accessed June 27, 2013).

Data from the United States Census Bureau. Available online at http://www.census.gov/hhes/socdemo/language/.

Data from Toastmasters International. Available online at http://toastmasters.org/artisan/detail.asp?CategoryID=1&SubCategoryID=10&ArticleID=429&Page=1.

Data from Weather Underground. Available online at www.wunderground.com (accessed June 27, 2013).

Federal Bureau of Investigations. “Uniform Crime Reports and Index of Crime in Daviess in the State of Kentucky enforced by Daviess County from 1985 to 2005.” Available online at http://www.disastercenter.com/kentucky/crime/3868.htm (accessed June 27, 2013).

“Foothill-De Anza Community College District.” De Anza College, Winter 2006. Available online at http://research.fhda.edu/factbook/DAdemofs/Fact_sheet_da_2006w.pdf.

Johansen, C., J. Boice, Jr., J. McLaughlin, J. Olsen. “Cellular Telephones and Cancer—a Nationwide Cohort Study in Denmark.” Institute of Cancer Epidemiology and the Danish Cancer Society, 93(3):203-7. Available online at http://www.ncbi.nlm.nih.gov/pubmed/11158188 (accessed June 27, 2013).

Rape, Abuse&Incest National Network. “How often does sexual assault occur?” RAINN, 2009. Available online at http://www.rainn.org/get-information/statistics/frequency-of-sexual-assault (accessed June 27, 2013).

Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
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Mahesh
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
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A unit of account is something that can be used to value goods and services and make calculations
Jim
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Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
Kalombe
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Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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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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