Business Statistics
hypothesis testing problems.
15 questions.
Microsoft word document:(10 points)
10 points will be awarded based on: following the instructions, quality, clarity, completeness, detailed calculations, and neatness of your typed MS document.
Problem:
Solve the problem using EXCEL. Please also submit your EXCEL output with your answers. (18 points)
A manufacturing company produces electric insulators. If insulation breaks when it is in use, a short circuit is likely to occur. To test the strength of insulators, destructive testing is carried out to determine how much force is required to break the insulator. Force is measured by observing the number of pounds of force applied to the insulator before it breaks. The following dada are from 30 insulators subject to this testing.
1810 | 1762 | 1734 | 1522 | 1870 |
1752 | 1866 | 1662 | 1696 | 1728 |
1680 | 1820 | 1734 | 1592 | 1656 |
1810 | 1744 | 1774 | 1662 | 1610 |
1652 | 1788 | 1550 | 1866 | 1634 |
1736 | 1688 | 1756 | 1764 | 1784 |
a. At the 0.05 level of significance, is there any evidence that the population mean force is equal to 1750 lbs.? (24 points)
Use 5-step P-Value approach to answer and write all steps in detail.
1.State the appropriate null and alternative hypotheses (4 points)
H0:
H1:
2. Specify the desired level of significance (2 points)
a =
3. Determine if it’s lower-tail, upper-tail or two tail test (3 points)
4. Compute the p-value (4 points)
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5. (i) State the Statistical Decision (4 points)
(ii) State the managerial conclusion in the context of the situation (7 points)
b. At the 0.05 level of significance, is there any evidence >span class="bumpedFont15">equal 1750 lbs.? (24 points)
Use 5-step P-Value approach to answer and write all steps in detail.
1.State the appropriate null and alternative hypotheses (4 points)
H0:
H1:
2. Specify the desired level of significance (2 points)
a =
3. Determine if it’s lower-tail, upper-tail or two tail test (3 points)
4. Compute the p-value (4 points)
>span class="bumpedFont15">p-value =
5. (i) State the Statistical Decision (4 points)
(ii) State the managerial conclusion in the context of the situation (7 points)
c. At the 0.05 level of significance, is there any evidence that the population mean force is at least equal 1750 lbs.? (24 points)
Use 5-step P-Value approach to answer and write all steps in detail.
1.State the appropriate null and alternative hypotheses(4 points)
H0:
H1:
2. Specify the desired level of significance (2 points)
a =
3. Determine if it’s lower-tail, upper-tail or two tail test (3 points)
4. Compute the p-value (4 points)
>span class="bumpedFont15">p-value =
5. (i) State the Statistical Decision (4 points)
(ii) State the managerial conclusion in the context of the situation (7 points)