Exercises to Quantitative

Analytical Methods
PHILIPP AIGNER WiSe 2020/2021

philipp.aigner@hs-mainz.de
WiSe 2020/2021
1
Exercise 21

According to an article published in a local newspaper, employees in the banking industry

average 6.63 hours of overtime on top of their regular 40-hour week. To check the accuracy of
the statement sample evidence was gathered. A sample of 100 employees revealed their
average overtime was 3.8 hours per week. If the sample standard deviation is 5.1 hours, conduct
the hypothesis test with α = 1%. Calculate the p-value.

philipp.aigner@hs-mainz.de
WiSe 2020/2021
2
 Hypothesis test for the mean
• State the null and the alternate hypotheses:
𝐻0 : 𝜇 = 𝜇0
𝐻1 : 𝜇 ≠ 𝜇0 𝑜𝑟 𝜇 > 𝜇0 𝑜𝑟 𝜇 < 𝜇0
• Select a test statistic: This statistic is t-distributed with n-1
𝑋−𝜇0 𝑋−𝜇0 degrees of freedom if X follows the normal
𝑇𝑛−1 = 𝑆𝑋
= 𝑆
𝑛 distribution or if the sample is large enough

philipp.aigner@hs-mainz.de
WiSe 2020/2021
3
 Solution Ex. 21:
• State hypotheses:
𝐻0 : 𝜇 = 6.63
𝐻1 : 𝜇 ≠ 6.63
We reject 𝐻0 if the test statistic is not
• Test statistic:
within the interval obtained by the
𝑋−𝜇0 𝑋−𝜇0 3.8−6.63 lower and upper critical value (cv).
𝑇𝑛−1 = 𝑆𝑋
= 𝑆
𝑛= 5.1
100 = −5.54

• Calculate quantil:
Lower critical value Upper critical value
-2.6264 2.6264 t-distribution
-2.5758 2.5758 normal distribution

philipp.aigner@hs-mainz.de
WiSe 2020/2021
4
Solution Ex. 21:
• Reject 𝐻0 . So the sample means differ significantly from the values given in the newspaper
• p-value:
Φ 𝑇𝑛−1 ∗ 2 = 0,000000028727596202710

Use Excel or Stata for

this calculations

philipp.aigner@hs-mainz.de
WiSe 2020/2021
5