EGN 3443

Final Exam

Instructor: Walter Silva Date: 05/01/2019

Duration: 100 minutes

U
Student Name: ____________________________ USF ID#

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dishonesty.” Signature: ________________________.

Additional Instructions:
Closed Book and Closed Notes, formula sheet is provided.
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Pace yourself on the quiz! Good Luck.

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Questions 1-5. Please write the most appropriate answer. (4 pts. e/a)

1. Let X1,.., Xn be a random sample from a population having a mean µ and standard deviation σ.

Provided that n is large, the Central Limit Theorem (CLT) implies that is approximately
__________ distributed.

2. When is the mean of a random sample of size n (n is small) from a normal population with
X−µ
mean µ, the random variable T = s has a probability distribution called __________ with
√n

__________ degrees of freedom.

3. A type-II error occurs if __________________________________________________.

4. If you want to develop a 99% confidence interval for the mean µ of a normal population, when
the standard deviation σ is known, the confidence level (or confidence coefficient) is _________.

5. Determine the t-percentile that is required to construct one-sided confidence interval at

confidence level 95% with degrees of freedom=14. _________

Short calculations. Questions 6-10. Please solve the next questions. (8 pts e/a)

6. The least squares regression line for a scatterplot is 𝑦𝑦� = 0.61𝑥𝑥 + 0.56. What is the residual for
the point (3, 1)? Explain.

7. The Wechsler Adult Intelligence Scale results in a normal distribution with a mean of 110 and a
standard deviation of 25. If someone tests at the 80th percentile, what score did that individual
have? Explain.

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8. There is a rough linear relationship between the number of assists and the number of steals by
professional basket players. A least squares fit results in the model 𝑦𝑦� = 0.52𝑥𝑥 − 0.43, 𝑥𝑥 ≥ 1,
where x is the number of assists and 𝑦𝑦� is the estimated number of steals. What is the estimated
increase in steals that corresponds to an increase of three assists? Explain.

9. An SRS of 20 patients undergoing laboratory work at a city hospital showed an average blood
potassium level of 3.1 with a standard deviation of 0.3. Calculate a 99% CI for the average blood
potassium level for patients undergoing laboratory work at this hospital?

10. The inside diameter of a randomly selected piston ring is a random variable with mean value 12
cm and standard deviation 0.04 cm. What are the expected value of the sample mean and the
standard deviation of the sample mean for a random sample of n = 64 rings? Explain.

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Detailed Calculations 11 - 12. Please Show all of your work. (20 pts each question)

11. In the past, a restaurant in the Tampa Bay Area has seved lunch to 125 people in average per day. A
local association claims that the average number of lunches served now is more than 125. To gather
information, the mentioned association sampled 25 days of lunch tickets. The sample yielded a mean
of 130.8 lunches per day and a standard deviation of 10.4. Do the data provide strong evidence for
their claim? Use 𝛼𝛼 = 0.05.

a) Fill in the blanks: (12 pts.)

1. Indicate the parameter of interest:

2. State the null Hypothesis:

3. State the alternative hypothesis:

4. What distribution would you use to solve this problem?

5. Define the appropriate statistic (formula to use):

6. Define the rejection criteria (using critical values)

7. Calculate the numerical value of the statistic defined previously (step 5):

8. Conclusion: (reject or not the Null hypothesis)

9. Conclusion in the context of the problem:

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b) Find the P-value (the narrower possible range of values given your statistical tables). Would you
reject or fail to reject your null hypothesis based on your Pvalue criteria? Explain. (4 pts.)

c) Calculate an upper confidence bound for the number of lunches served daily. (4 pts.)

12. A study to assess the capability of subsurface flow wetland systems to remove biochemical oxygen
demand (BOD) and various other chemical constituents resulted in the accompanying data on x = BOD
mass loading and y = BOD mass removal.

x = BOD mass loading 8 10 11 13 16 27

y = BOD mass removal 7 8 8 10 27 16

a) Obtain the estimated 𝛽𝛽̂0 and 𝛽𝛽̂1 coefficients. (4 pts.) Show your calculations.

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b) Write the linear regression equation. (2 pts.)

c) Calculate the coefficient of determination (𝑅𝑅2 ) (4 pts.)

d) Does there appear to be a useful relationship between BOD mass loading and BOD mass removal?
State and test the appropriate hypothesis. Use 𝛼𝛼 = 0.05. (10 pts.)

Bonus questions: (3 pts. e/a.)

A regression was done for 20 cities with latitude as the explanatory variable (x) and average January
temperature as the response variable (y). The latitude is measured in degrees and average January
temperature in degrees Fahrenheit. The latitudes ranged from 26 (Miami) to 47 (Duluth) The regression
equation is 𝑦𝑦� = 49.4 − 0.313𝑥𝑥

13. The total sum of squares (SST) = 4436.6, and the error sum of squares (SSE) = 1185.8. What is the
value of 𝑅𝑅2 ?

14. Mexico City has latitude 20 degrees. What is the problem with using the regression equation to
estimate the average January temperature for Mexico City?

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 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 − 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸

𝐸𝐸𝐸𝐸𝐸𝐸 3443

𝐼𝐼𝐼𝐼 𝑋𝑋𝑖𝑖 𝑖𝑖𝑖𝑖 𝑎𝑎 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑎𝑎 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑁𝑁(𝜇𝜇, 𝜎𝜎 2 ) 𝑎𝑎𝑎𝑎𝑎𝑎 𝑛𝑛 ≥ 40 𝑡𝑡ℎ𝑒𝑒𝑒𝑒:
𝑥𝑥̅ −𝜇𝜇
𝑍𝑍 = 𝜎𝜎 ℎ𝑎𝑎𝑎𝑎 𝑎𝑎 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 (𝑈𝑈𝑈𝑈𝑈𝑈 𝑖𝑖𝑖𝑖 𝜎𝜎 𝑖𝑖𝑖𝑖 𝑘𝑘𝑘𝑘𝑘𝑘𝑘𝑘𝑘𝑘, 𝑜𝑜𝑜𝑜ℎ𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑖𝑖𝑖𝑖 𝑏𝑏𝑏𝑏 𝑆𝑆)
�
√𝑛𝑛
𝜎𝜎 𝜎𝜎
𝑪𝑪𝑪𝑪 𝑓𝑓𝑓𝑓𝑓𝑓 𝜇𝜇 − 𝑡𝑡𝑡𝑡𝑡𝑡 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡: �𝑥𝑥̅ − 𝑧𝑧𝛼𝛼�2 . , 𝑥𝑥̅ + 𝑧𝑧𝛼𝛼�2 . �
√𝑛𝑛 √𝑛𝑛
𝜎𝜎 𝜎𝜎
𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑓𝑓𝑓𝑓𝑓𝑓 𝜇𝜇: 𝑥𝑥̅ + 𝑧𝑧𝛼𝛼 . 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑓𝑓𝑓𝑓𝑓𝑓 𝜇𝜇: 𝑥𝑥̅ − 𝑧𝑧𝛼𝛼 .
√𝑛𝑛 √𝑛𝑛
_______________________________________________________________________________________
�(1−𝑝𝑝�)
�𝑝𝑝 2 /4𝑛𝑛2
+𝑧𝑧𝛼𝛼/2
𝑛𝑛 2 2
𝐶𝐶𝐶𝐶 𝑓𝑓𝑓𝑓𝑓𝑓 𝑎𝑎 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝: 𝑝𝑝� ± 𝑧𝑧𝛼𝛼/2 2 𝑊𝑊ℎ𝑒𝑒𝑒𝑒𝑒𝑒 𝑝𝑝� = �𝑝𝑝̂ + 𝑧𝑧𝛼𝛼/2 /2𝑛𝑛�/[1 + 𝑧𝑧𝛼𝛼/2 /𝑛𝑛]
1+𝑧𝑧𝛼𝛼/2/𝑛𝑛

2𝑧𝑧 2 𝑝𝑝�(1−𝑝𝑝�)−𝑧𝑧 2 𝑤𝑤 2 ±�4𝑧𝑧 4 𝑝𝑝�(1−𝑝𝑝�)(𝑝𝑝�(1−𝑝𝑝�)−𝑤𝑤2 )+𝑤𝑤 2 𝑧𝑧 4 4𝑧𝑧 2 𝑝𝑝�(1−𝑝𝑝�)

𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 (𝑛𝑛) = 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓: 𝑛𝑛 ≈
𝑤𝑤2 𝑤𝑤2
_________________________________________________________________________________________
𝐼𝐼𝐼𝐼 𝑋𝑋𝑖𝑖 𝑖𝑖𝑖𝑖 𝑎𝑎 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑎𝑎 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑁𝑁(𝜇𝜇, 𝜎𝜎 2 ) 𝑎𝑎𝑎𝑎𝑎𝑎 𝑛𝑛 < 40 𝑡𝑡ℎ𝑒𝑒𝑒𝑒:
𝑥𝑥̅ −𝜇𝜇
𝑇𝑇 = 𝑆𝑆 ℎ𝑎𝑎𝑎𝑎 𝑎𝑎 𝑡𝑡 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑤𝑤𝑤𝑤𝑤𝑤ℎ (𝑛𝑛 − 1) 𝑑𝑑𝑑𝑑
�
√𝑛𝑛
𝑆𝑆 𝑆𝑆
𝑪𝑪𝑪𝑪 𝑓𝑓𝑓𝑓𝑓𝑓 𝜇𝜇 − 𝑡𝑡𝑡𝑡𝑡𝑡 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡: �𝑥𝑥̅ − 𝑡𝑡𝛼𝛼�2,𝑛𝑛−1 . , 𝑥𝑥̅ + 𝑡𝑡𝛼𝛼�2,𝑛𝑛−1 . �
√ 𝑛𝑛 √𝑛𝑛
𝑆𝑆 𝑆𝑆
𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑓𝑓𝑓𝑓𝑓𝑓 𝜇𝜇: 𝑥𝑥̅ + 𝑡𝑡𝛼𝛼,𝑛𝑛−1 . 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑓𝑓𝑓𝑓𝑓𝑓 𝜇𝜇: 𝑥𝑥̅ − 𝑡𝑡𝛼𝛼,𝑛𝑛−1 .
√𝑛𝑛 √𝑛𝑛
___________________________________________________________________________________________
If 𝑋𝑋𝑖𝑖 𝑖𝑖𝑖𝑖 𝑎𝑎 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑎𝑎 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑑𝑑𝑖𝑖𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑁𝑁(𝜇𝜇, 𝜎𝜎 2 ) 𝑡𝑡ℎ𝑒𝑒𝑒𝑒:
(𝑛𝑛 − 1)𝑆𝑆 2
ℎ𝑎𝑎𝑎𝑎 𝑎𝑎 𝑐𝑐ℎ𝑖𝑖 − 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 (𝜒𝜒 2 ) 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 𝑤𝑤𝑤𝑤𝑤𝑤ℎ (𝑛𝑛 − 1) 𝑑𝑑𝑑𝑑
𝜎𝜎 2
(𝑛𝑛 − 1)𝑆𝑆 2 (𝑛𝑛 − 1)𝑆𝑆 2
𝑪𝑪𝑪𝑪 𝑓𝑓𝑓𝑓𝑓𝑓 𝜎𝜎 2 − 𝑡𝑡𝑡𝑡𝑡𝑡 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡: � 2 , 2 �
𝜒𝜒𝛼𝛼� , 𝑛𝑛−1 𝜒𝜒1−𝛼𝛼� , 𝑛𝑛−1
2 2
(𝑛𝑛−1)𝑆𝑆 2 (𝑛𝑛−1)𝑆𝑆 2
𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑓𝑓𝑓𝑓𝑓𝑓 𝜎𝜎 2 : 2 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑓𝑓𝑓𝑓𝑓𝑓 𝜎𝜎 2 : 2
𝜒𝜒1−𝛼𝛼 , 𝑛𝑛−1 𝜒𝜒𝛼𝛼 , 𝑛𝑛−1
2
𝑪𝑪𝑪𝑪 𝑓𝑓𝑓𝑓𝑓𝑓 𝜎𝜎 ℎ𝑎𝑎𝑎𝑎 𝑎𝑎𝑎𝑎 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑜𝑜𝑜𝑜 𝑡𝑡ℎ𝑒𝑒 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑖𝑖𝑖𝑖 𝑡𝑡ℎ𝑒𝑒 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 𝑓𝑓𝑓𝑓𝑓𝑓 𝜎𝜎

Hypothesis Testing
A type I error consists of rejecting the Null hypothesis when it is true
A type II error involves not rejecting the null hypothesis when it is false

Reject the null hypothesis if P-value ≤ α

𝐻𝐻0 : 𝜇𝜇 = 𝜇𝜇0 𝑣𝑣𝑣𝑣 𝐻𝐻𝑎𝑎 : 𝜇𝜇 ≠ 𝜇𝜇0
𝐻𝐻0 : 𝜇𝜇 = 𝜇𝜇0 𝑣𝑣𝑣𝑣 𝐻𝐻𝑎𝑎 : 𝜇𝜇 > 𝜇𝜇0
𝐻𝐻0 : 𝜇𝜇 = 𝜇𝜇0 𝑣𝑣𝑣𝑣 𝐻𝐻𝑎𝑎 : 𝜇𝜇 < 𝜇𝜇0

Case I: 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑓𝑓𝑓𝑓𝑓𝑓 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 (𝜎𝜎 𝑘𝑘𝑘𝑘𝑘𝑘𝑘𝑘𝑘𝑘)

𝑥𝑥̅ − 𝜇𝜇0
𝑍𝑍 = 𝜎𝜎 ~ 𝑁𝑁(0,1)
� 𝑛𝑛
√
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 > 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 𝑧𝑧
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 < 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑜𝑜𝑜𝑜 𝑧𝑧
𝐼𝐼𝑓𝑓 𝐻𝐻𝑎𝑎 : 𝜇𝜇 ≠ 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 2(𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 |𝑧𝑧|)

7
Case II: 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑓𝑓𝑓𝑓𝑓𝑓 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 (𝜎𝜎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢)
𝑥𝑥̅ −𝜇𝜇0
a) Large sample (n≥40) 𝑍𝑍 = 𝑆𝑆� ~ 𝑁𝑁(0,1) Verify normality of data using prob. plot
√𝑛𝑛
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 > 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 𝑧𝑧
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 < 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑜𝑜𝑜𝑜 𝑧𝑧
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 ≠ 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 2(𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 |𝑧𝑧|)
𝑥𝑥̅ −𝜇𝜇
b) Small sample (n<40) t= 𝑆𝑆 0 ~ 𝑡𝑡𝑛𝑛−1 Verify normality of data using prob. plot
�
√𝑛𝑛
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 > 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑡𝑡𝑛𝑛−1 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 𝑡𝑡
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 < 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑡𝑡𝑛𝑛−1 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑜𝑜𝑜𝑜 𝑡𝑡
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝜇𝜇 ≠ 𝜇𝜇0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 2(𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑡𝑡𝑛𝑛−1 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 |𝑡𝑡|)

Case III: Test for proportions

𝑝𝑝�−𝑝𝑝0
𝑍𝑍 = ~ 𝑁𝑁(0,1) valid only if 𝑛𝑛𝑝𝑝0 ≥ 10 𝑎𝑎𝑎𝑎𝑎𝑎 𝑛𝑛(1 − 𝑝𝑝0 ) ≥ 10
�𝑝𝑝0 (1−𝑝𝑝0 )/𝑛𝑛

𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝑝𝑝 > 𝑝𝑝0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 𝑧𝑧
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝑝𝑝 < 𝑝𝑝0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑜𝑜𝑜𝑜 𝑧𝑧
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝑝𝑝 ≠ 𝑝𝑝0 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 2(𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 |𝑧𝑧|)

𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅

Model equation: 𝑌𝑌 = 𝛽𝛽0 + 𝛽𝛽1 𝑥𝑥 + 𝜀𝜀

𝛽𝛽̂0 = 𝑦𝑦� − 𝛽𝛽̂1 𝑥𝑥̅

∑(𝑥𝑥𝑖𝑖 − 𝑥𝑥̅ )(𝑦𝑦𝑖𝑖 − 𝑦𝑦�) ∑ 𝑥𝑥𝑖𝑖 𝑦𝑦𝑖𝑖 − 𝑛𝑛𝑥𝑥̅ 𝑦𝑦�
𝛽𝛽̂1 = =
∑(𝑥𝑥𝑖𝑖 − 𝑥𝑥̅ )2 ∑ 𝑥𝑥𝑖𝑖 2 − 𝑛𝑛𝑥𝑥̅ 2
𝑆𝑆𝑆𝑆𝑆𝑆 = �(𝑦𝑦𝑖𝑖 − 𝑦𝑦�𝑖𝑖 )2 = � 𝑦𝑦𝑖𝑖 2 − 𝛽𝛽̂0 � 𝑦𝑦1 − 𝛽𝛽̂1 � 𝑥𝑥𝑖𝑖 𝑦𝑦𝑖𝑖

𝑆𝑆𝑆𝑆𝑆𝑆 = �(𝑦𝑦𝑖𝑖 − 𝑦𝑦�𝑖𝑖 )2 = � 𝑦𝑦𝑖𝑖 2 − (� 𝑦𝑦𝑖𝑖 )2 /𝑛𝑛

𝑆𝑆𝑆𝑆𝑆𝑆
𝑟𝑟 2 = 1 −
𝑆𝑆𝑆𝑆𝑆𝑆
2
𝑆𝑆𝑆𝑆𝑆𝑆
𝑠𝑠 =
𝑛𝑛 − 2

�1 −𝛽𝛽1
𝛽𝛽 �1 −𝛽𝛽1
𝛽𝛽
Inferences about 𝛽𝛽1 : The standardized variable: 𝑇𝑇 = = has a 𝑡𝑡𝑛𝑛−2 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑
𝑆𝑆/�∑(𝑥𝑥𝑖𝑖 −𝑥𝑥̅ )2 𝑆𝑆𝛽𝛽
� 1

A C.I. for 𝛽𝛽1 : 𝛽𝛽̂1 ± 𝑡𝑡𝛼𝛼,𝑛𝑛−2 . 𝑆𝑆𝛽𝛽�1

2
�1 −𝛽𝛽10
𝛽𝛽
Hypothesis testing for 𝛽𝛽1 : 𝐻𝐻0 : 𝛽𝛽1 = 𝛽𝛽10 and 𝑡𝑡 =
𝑆𝑆𝛽𝛽
�1
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝛽𝛽1 > 𝛽𝛽10 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑡𝑡𝑛𝑛−2 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 𝑡𝑡
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝛽𝛽1 < 𝛽𝛽10 𝑡𝑡ℎ𝑒𝑒𝑒𝑒 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑡𝑡𝑛𝑛−2 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑜𝑜𝑜𝑜 𝑡𝑡
𝐼𝐼𝐼𝐼 𝐻𝐻𝑎𝑎 : 𝛽𝛽1 ≠ 𝛽𝛽10 𝑡𝑡ℎ𝑒𝑒𝑛𝑛 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = 2(𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑡𝑡ℎ𝑒𝑒 𝑡𝑡𝑛𝑛−2 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑡𝑡ℎ𝑒𝑒 𝑟𝑟𝑟𝑟𝑟𝑟ℎ𝑡𝑡 𝑜𝑜𝑜𝑜 |𝑡𝑡|)

The model utility test is: 𝐻𝐻0 : 𝛽𝛽1 = 0 𝑣𝑣𝑣𝑣. 𝐻𝐻𝑎𝑎 : 𝛽𝛽1 ≠ 0

8
Critical values for Chi-square distribution

Standard normal curve areas

9
 Critical values for t distributions

t curve Tail Areas

10