SAFE – SBM Peer Mentoring

EC203 ECONOMIC STATISTICS

WEEK 11: Peer Mentoring Activity Sheet

Discussion Forum Session

A. Ice breaker Activity

Differentiate between the following terms:

a) Type I and Type II error.

b) Null Hypothesis and Alternative Hypothesis
c) Confidence level and Significance level
d) Rejection Region and Non-Rejection Region
e) Critical Value and Observed Value.

B. Case Study Questions

CASE STUDY 01: A random sample of 200 observations was taken from a normal population
with standard deviation of 100 and produced sample mean of 150. Test the null hypothesis H0: μ
= 160 against the alternative hypothesis HA: μ < 160. Use α = 0.05.

CASE STUDY 02: The average weekly wage of all the workers at a large factory is $626.40. In
a random sample of 100 male workers at the factory, it was found that X = $682.00. Assuming
that population standard deviation is $82.09, can we conclude (with α = 0.05) that the mean
weekly wage of male workers is greater than the overall mean weekly wage?

Viber Chat Session

Multiple Choice Questions:

1. Consider the following null and alternative hypotheses.

Ho: x́= 352 Ha: x́ > 352
These hypotheses _______________.
A. are not mutually exclusive
B. are not collectively exhaustive
C. do not reference a population parameter
D. are established correctly

2. If, in testing hypotheses, the researcher uses a method in which the probability of the
calculated statistic is compared to alpha to reach a decision, the researcher is using the
_______.
A. probability method
B. critical value method
C. z-value method
D. statistical method

3. A researcher is testing a hypothesis of a single mean. The critical z-value for  = .05 and a
one-tailed test is 1.645. The observed z-value from sample data is 1.13. The decision made
by the researcher based on this information is to ______ the null hypothesis.

A. reject
B. not reject.
C. redefine.
D. change the alternate hypothesis.

4. Define the following terms:

 Confidence Level
 Rejection Region
 Null Hypothesis
 Test Statistic