Statistics For Business and Economics 8th Edition Newbold Solutions Manual

Statistics for Business and Economics
8th Edition Newbold Solutions Manual

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Chapter 9:
Hypothesis Testing: Single Population
9.1 H : p  .2; H : p  .2;

0 1
9.2 H 0
: No change in interest rates is warranted
H 1
: Reduce interest rates to stimulate the economy
9.3 H :p 0
 p : There is no difference in the percentage of underfilled cereal
A B
packages
H :p1 A
 p : Lower percentage after the change
B
9.4 a. European perspective:

H 0 : Genetically modified food stuffs are safe
H : They are not safe1
b. U.S. farmer perspective:

H 0 : Genetically modified food stuffs are not safe
H 1
: They are safe
9.5 H : T  T No difference in the total number of votes between Bush and Gore
0 B G
H : T  T Bush with more votes

1 B G
9.6 H : T  T No difference in the total number of votes between Bush and Gore
0 B G
H : T T Gore with more votes

1 B G
9.7 A random sample is obtained from a population with a variance of 625 and the sample mean is
computed. Test the null hypothesis H 0 :  = 100 versus the alternative H 1 :   100 . 2
= 625 Compute the critical value xc and state the decision rule
a. n = 25. Reject H 0
if x  xc = 0 + z  n = 100 +1.645(25)/ 25 =
108.225
b. n = 16. Reject H 0
if x  xc = 0 + z  n = 100 +1.645(25)/ 16 =
110.28125
c. n = 44. Reject H 0
if x  xc = 0 + z  n = 100 +1.645(25)/ 44 =
106.1998
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9-1
9-2 Statistics for Business & Economics, 7th edition
d. n = 32 Reject H 0
if x  xc = 0 + z  n = 100 +1.645(25)/ 32 = 107.26994
9.8 A random sample of n = 25 is obtained from a population with a variance  2 and the
sample mean is computed. Test the null hypothesis H 0 :  = 100 versus the alternative
H 1
:   100 with alpha = .05. Compute the critical value xc and state the decision rule
a.  2 = 225. Reject H 0
if x  xc = 0 + z  n = 100 +1.645(15)/ 25 = 104.935
b.  2
= 900. Reject H 0
if x  xc = 0 + z  n = 100 +1.645(30)/ 25 = 109.87
c.  2 = 400. Reject H 0
if x  xc = 0 + z  n = 100 +1.645(20)/ 25 = 106.58
d.  2 = 600. Reject H 0
if x  xc = 0 + z  n = 100 +1.645(24.4949)/ 25 = 108.0588
9.9 A random sample is obtained from a population with variance = 400 and the sample
mean is computed to be 70. Consider the null hypothesis H 0 :  = 80 versus the
alternative H :
1
 80 . Compute the p-value
x − 0
70 − 80
a. n = 25. z = = = -2.50. p − value = P ( z p  −2.50) = .0062
 n 20 25
x − 0 70 − 80
b. n = 16. z = = = -2.00. p − value = P ( z p  −2.00) = .0228
 n 20 16
x − 0 70 − 80
c. n = 44. z = = = -3.32. p − value = P ( z p  −3.32) = .0004
 n 20 44
x − 0 70 − 80
d. n = 32. z = = = -2.83. p − value = P ( z p  −2.83) = .0023
 n 20 32
9.10 A random sample of n = 25, variance =  2 and the sample mean is = 70. Consider the
null hypothesis H 0 :  = 80 versus the alternative H 1 :   80 . Compute the p-
value
x − 0
70 − 80
a.  2 = 225. z = = -3.33. p − value = P ( z p  −3.33) = .0004
=
 n 15 25
x − 0 70 − 80
b.  2 = 900. z = = = -1.67. p − value = P ( z p  −1.67) = .0475
 n 30 25
x − 0 70 − 80
c.  2 = 400. z = = = -2.50. p − value = P ( z p  −2.50) = .0062
 n 20 25
x − 0 70 − 80
d.  2 = 600. z = = = -2.04. p − value = P ( z p  −2.04) = .0207
 n 24.4949 25

Chapter 9: Hypothesis Testing: Single Population 9-3
9.11 H : 0
 16 ; H :
1
 16 ; reject H 0
if Z.10 < -1.28
15.84 − 16
Z= = -1.6, therefore, Reject H 0
at the 10% level.
.4 16
9.12 H : 0
 50 ; H :
1
 50 ; reject H 0
if Z.10 < -1.28
48.2 − 50
Z= = -1.8, therefore, Reject H 0
at the 10% level.
3 9
9.13 a. H : 0
= 3; H : 1
 3 ; reject H 0
if Z.05 > 1.645
3.07 − 3
Z= = 1.4, therefore, Do Not Reject H 0 at the 5% level.
.4 64
b. p-value = 1 – FZ(1.4) = 1 - .9192 = .0808
c. the p-value would be higher – the graph should show that the p-value now
corresponds to the area in both of the tails of the distribution whereas before it was
the area in one of the tails.
d. A one-sided alternative is more appropriate since we are not interested in detecting
possible low levels of impurity, only high levels of impurity.

9.14 Test H :0

 100 ; H :1
 100 , using n = 25 and alpha = .05
x − 0 106 − 100
a. x = 106, s = 15 . Reject if  tn −1,= 2.00. Since 2.00 is greater than
s n 15 25
the critical value of 1.711, there is sufficient evidence to reject the null hypothesis.
x − 0 104 − 100
b. x = 104, s = 10 . Reject if  tn −1, , = 2.00. Since 2.00 is greater than
s n 10 25
the critical value of 1.711, there is sufficient evidence to reject the null hypothesis.
x − 0 95 − 100
c. Assuming a one-tailed test, x = 95, s = 10 . Reject if  tn −1, , = -2.50.
s n 10 25
Since -2.50 is less than the critical value of 1.711, there is insufficient evidence to
reject the null hypothesis.
x − 0 92 − 100
d. Assuming a one-tailed upper test, x = 92, s = 18 . Reject if  tn −1, , =
s n 18 25
-2.22. Since -2.22 is less than the critical value of 1.711, there is insufficient
evidence to reject the null hypothesis.
9.15 Test H :0

= 100 ; H : 1
 100 , using n = 36 and alpha = .05
x − 0 106 − 100
a. x = 106, s = 15 . Reject if  −tn −1,  ,
= 2.40. Since 2.40 is greater
s n 15 36
than -1.690, there is insufficient evidence to reject the null hypothesis.

x − 0 104 − 100
b. x = 104, s = 10 . Reject if  −tn −1, , = 2.40. Since 2.40 is greater
s n 10 36
than -1.690, there is insufficient evidence to reject the null hypothesis.
x − 0 95 − 100
c. x = 95, s = 10 . Reject if  −tn −1, , = -3.00. Since -3.00 is less than
s n 10 36
the critical value of -1.690, there is sufficient evidence to reject the null hypothesis.
x − 0 92 − 100
d. x = 92, s = 18 . Reject if  −tn −1, , = -2.67. Since -2.67 is less than
s n 18 36
the critical value of -1.690, there is sufficient evidence to reject the null hypothesis.
9.16 H : 0
 3; H 1 :   3;
2.4 − 3
t= = -3.33, p-value is < .005. Reject H 0
at any common level of alpha
1.8 100
9.17 H : 0
= 4; H 1 :   4; reject H 0
if 2.576 > t1561,.005 > -2.576
4.27 − 4
t= = 8.08, p-value is < .010. Reject H 0
at any common level of alpha.
1.32 1562
9.18 H : 0
= 0; H 1 :   0;
.078 − 0
at any common level of alpha
.201 76
9.19 H : 0
 3; H 1 :   3; reject H 0
if t171,.01 > 2.326
3.31 − 3
.7 172
9.20 H : 0
= 0; H 1 :   0;
−2.91 − 0
t= = -3.35, p-value is < .005. Reject H 0
11.33 170
9.21 H : 0
= 125.32; H 1 :   125.32; reject H 0
if |t15, .05/2 | > 2.131
131.78 − 125.32
t= = 1.017, p-value is > .200. Do not reject H 0
at the .05 level.
25.4 16
9.22 a. No, the 95% confidence level provides for 2.5% of the area in either tail. This does not
correspond to a one-tailed hypothesis test with an alpha of 5% which has 5% of the area in
one of the tails.

b. Yes.
9.23 H : 0
= 10; H 1 :   10;
8.82 − 10
t= = -1.554, p-value is between .100 and .050. Do not reject H 0
at
2.4013 10
common levels of alpha.
9.24 H : 0
= 20; H 1 :   20; reject H 0
if |t8, .05/2 | > 2.306
20.3556 − 20
t= = 1.741, therefore, do not reject H 0
at the 5% level
.6126 9
9.25 H : 0
= 78.5; H 1 :   78.5; reject H 0
if |t7, .10/2 | > 1.895
74.5 − 78.5
t= = -1.815, therefore, do not reject H 0
at the 10% level
6.2335 8
9.26 The population values must be assumed to be normally distributed.

H 0 :   50; H 1 :   50; reject H 0 if t19, .05 < -1.729
41.3 − 50
t= = -3.189, therefore, reject H 0
at the 5% level
12.2 20
9.27 a. H :0
 400; H 1 :   400;
381.35 − 400
t= = -1.486, p-value = .0797, therefore, reject H 0 at alpha levels
48.60 15
greater than 7.97%
b. Yes, with a larger sample size, the standard error would be smaller and hence, the
calculated value of t would be larger. This would yield a smaller p-value and hence
the company’s claim could be rejected at a lower significance level than part a.
9.28 A random sample is obtained to test the null hypothesis of the proportion of women who
said yes to a new shoe model. H 0 : p  .25; H 1 : p  .25; . What value of the sample
proportion is required to reject the null hypothesis with alpha = .03?
a. n = 400. Reject H 0 if pˆ  pˆ c = p0 + z p0 (1 − p0 ) / n = .25 +1.88
(.25)(1 − .25) / 400 = .2907
if pˆ  pˆ c = p0 + z p0 (1 − p0 ) / n = .25 +1.88
(.25)(1 − .25) / 225 = .30427
if pˆ  pˆ c = p0 + z p0 (1 − p0 ) / n = .25 +1.88
(.25)(1 − .25) / 625 = .28256

d. n = 900. Reject H 0
if pˆ  pˆ c = p0 + z p0 (1 − p0 ) / n = .25 +1.88
(.25)(1 − .25) / 900 = .2771
9.29 A random sample is obtained to test the null hypothesis of the proportion of women who
would purchase an existing shoe model. H 0 : p  .25; H 1 : p  .25; . What value of the
sample proportion is required to reject the null hypothesis with alpha = .05?
a. n = 400. Reject H 0 if pˆ  pˆ c = p0 − z p0 (1 − p0 ) / n = .25 – 1.645
(.25)(1 − .25) / 400 = .2144
if pˆ  pˆ c = p0 − z p0 (1 − p0 ) / n = .25 – 1.645
(.25)(1 − .25) / 225 = .2025
if pˆ  pˆ c = p0 − z p0 (1 − p0 ) / n = .25 – 1.645
(.25)(1 − .25) / 625 = .2215
d. n = 900. Reject H 0
if pˆ  pˆ c = p0 − z p0 (1 − p0 ) / n = .25 – 1.645
(.25)(1 − .25) / 900 = .22626
9.30 H : p  .25; H : p  .25;

0 1
.2908 − .25
z= = 1.79, p-value = 1 – FZ(1.79) = 1 - .9633 = .0367
(.25)(.75) / 361
Therefore, reject H 0 at alpha greater than 3.67%
9.31 H : p  .25; H : p  .25; reject H

0 1 0
if z.05 < -1.645
.173 − .25
z= = -5.62, p-value = 1 – FZ(5.62) = 1 – 1.0000 = .0000
(.25)(.75) / 998
Therefore, reject H 0 at the 5% alpha level
9.32 H : p = .5; H : p  .5;

0 1
.45 − .5
z= = -1.26, p-value = 2[1 – FZ(1.26)] = 2[1 – .8962] = .2076
(.5)(.5) /160
The probability of finding a random sample with a sample proportion this far or further
from .5 if the null hypothesis is really true is .2076

9.33 H : p = .5; H : p  .5; reject H

0 1 0
if |z.10/2 | > 1.645
.5226 − .5
z= = .64, p-value = 2[1 – FZ(.64)] = 2[1 – .7389] = .5222
(.5)(.5) /199
Therefore, do not reject H 0 at the 10% alpha level. The p-value shows the probability
of finding a random sample with a sample proportion this far or farther from .5 if the null
hypothesis is really true is .5222
9.34 H : p = .5; H : p  .5;

0 1
.56 − .5
z= = .85, p-value = 1 – FZ(.85) = 1 – .8023 = .1977
(.5)(.5) / 50
Therefore, reject H 0 at alpha levels in excess of 19.77%
9.35 H : p  .75; H : p  .75;
0 1
.686 − .75
z= = -1.94, p-value = 1 – FZ(1.94) = 1 – .9738 = .0262
(.25)(.75) /172
9.36 H : p  .75; H : p  .75;

0 1
.6931 − .75
z= = -1.87, p-value = 1 – FZ(1.87) = 1 – .9693 = .0307
(.75)(.25) / 202
9.37 Compute the probability of Type II error and the power for the following
 5.041 − 5.10 
a.  = 5.10 .  = P( x  xc |  =  * = P( x  5.041|  * = 5.10) = P  z  
 .1 16 
= P(z ≤ -2.36) = .0091. Power = 1 – .0091 = .9909
 5.041 − 5.03 
b.  = 5.03 .  = P( x  xc |  =  * = P( x  5.041|  * = 5.03) = P  z  
 .1 16 
= P(z ≤ .44) = .6700. Power = 1 – .6700 = .3300
 5.041 − 5.15 
c.  = 5.15 .  = P( x  xc |  =  * = P( x  5.041|  * = 5.15) = P  z  
 .1 16 
= P(z ≤ -4.36) = .0000. Power = 1 – .0000 = 1.0000
 5.041 − 5.07 
d.  = 5.07 .  = P( x  xc |  =  * = P( x  5.041|  * = 5.07) = P  z  
 .1 16 
= P(z ≤ -1.16) = .1230 . Power = 1 – .1230 = .8770

9.38 What is the probability of Type II error if the actual proportion is

 
 
 .46 − p *
.54 − p *
a. P = .52 .  = P (.46  pˆ  .54 | p = p ) = P
*
z
 p* (1 − p* ) p* (1 − p* ) 
 
 n n 
 
 .46 − .52 .54 − .52 
= P z  = P(-2.94 ≤ z ≤ .98) = .4984 + .3365 = .8349
 .52(1 − .52) .52(1 − .52) 
 600 600 
 
 .46 − .58 .54 − .58 
b. P = .58 .  = P (.46  pˆ  .54 | p = p* ) = P  z 
 .58(1 − .58) .58(1 − .58) 
 600 600 
= P(-5.96 ≤ z ≤ -1.99) = .5000 – .4767 = .0233
 
 .46 − .53 .54 − .53 
c. P = .53 .  = P (.46  pˆ  .54 | p = p* ) = P  z 
 .53(1 − .53) .53(1 − .53) 
 600 600 
= P(-3.44 ≤ z ≤ .49) = .4997 + .1879 = .6876
 
 .46 − .48 .54 − .48 
d. P = .48 .  = P (.46  pˆ  .54 | p = p* ) = P  z 
 .48(1 − .48) .48(1 − .48) 
 600 600 
= P(-.98 ≤ z ≤ 2.94) = .3365 + .4984 = .8349
 
 .46 − .43 .54 − .43 
e. P = .43 .  = P (.46  ˆ
p  .54 | p = p *
) = P   z  
 .43(1 − .43) .43(1 − .43) 
 600 600 
= P(1.48 ≤ z ≤5.44) = .5000 – .4306 = .0694

X − 50
9.39 a. H 0
is rejected when
3 9
< -1.28 or when X < 48.2. Given an X = 48.2 hours,
the decision is to reject the null hypothesis.

48.2 − 49
b. The power of the test = 1 -  = 1 – P(Z > ) = 1 – P(Z > -.80) = .2119
3 9
X −3
9.40 a. H 0
is rejected when
.4 64
> 1.645 or when X > 3.082. Since the sample mean is
3.07% which is less than the critical value, the decision is do not reject the null
hypothesis.
3.082 − 3.1
b. The  = P(Z < ) = 1 – FZ(.36) = .3594. Power of the test = 1 -  = .6406
.4 64
X −4
9.41 a. H 0
is rejected when –2.5758 < < 2.5758 or when 3.914 < X < 4.086.
1.32 1562
Since the sample mean was 4.27, which is greater than the upper critical value, the
decision is to reject the null hypothesis.
3.914 − 3.95 4.086 − 3.95
b.  = P( <Z< ) = P(-1.08 > Z > 4.07) = .8599
1.32 1562 1.32 1562
p − .5
9.42 H 0
is rejected when
.25 / 802
< -1.28 or when p < .477
.477 − .45
The power of the test = 1 -  = 1 – P(Z > ) = 1-P(Z > 1.54) = .9382
(.45)(.55) / 802
p − .25
9.43 a. H 0
is rejected when
(.25)(.75) / 998
< -1.645 or when p < .2275. Since the
sample proportion is .173 which is less than the critical value, the decision is to reject the
null hypothesis.
.2275 − .2
b. The power of the test = 1 -  = 1 – P(Z > ) = 1-P(Z > 2.17) = .9850
(.2)(.8) / 998

p − .5
9.44 a. H 0
is rejected when –1.645 > > 1.645 or when .442 > p > .558. Since
.25 /199
the sample proportion is .5226 which is within the critical values. The decision is that there
is insufficient evidence to reject the null hypothesis.
.442 − .6 .558 − .6
b.  = P( < Z< ) = 1-P(-4.55 < Z < -1.21) = .1131
(.6)(.4) /199 (.6)(.4) /199
30.8 − 32
9.45 a.  = P( Z  ) = P(Z < -2.4) = 0.0082
3 36
30.8 − 32
b.  = P( Z  ) = P(Z < -1.2) =0.1151.
3 9
The larger probability of a Type I error is due to the smaller sample size which increases
the standard error of the mean.
30.8 − 31
c.  = P( Z  ) = P(Z > -.4) =0.6554
3 36
.14 − .09
9.46 a.  = P( Z  ) = P(Z > 1.75 ) = 0.0401
(.09)(.91) /100
.14 − .09
b.  = P( Z  ) = P(Z > 3.49 ) = 0.0002 . The smaller probability of a
(.09)(.91) / 400
Type I error is due to the larger sample size which lowers the standard error of the mean.

.14 − .20
c.  = P( Z  ) = P(Z < -1.5) = .0668
(.2)(.8) /100
d. i) lower, ii) higher
(n − 1) s 2 24(165)
H 0 :   100; H 1 :   100;  = =
2 2 2
9.47 a. = 39.6,
 2
100
 2
(24,.025) = 39.36,  2
(24,.010) = 42.98
Therefore, reject H 0
at the 2.5% level but not at the 1% level of significance.
(n − 1) s 2 28(165)
H 0 :   100; H 1 :   100;  = =
2 2 2
b. = 46.2,
 2
100
 2
(28,.025) = 44.46,  2
(28,.010) = 48.28
at the 2.5% level but not at the 1% level of significance.
(n − 1) s 2 24(159)
c. H :   100; H 1 :   100;  =
2 2 2
= = 38.16,
0
 2
100
 2
(24,.050) = 36.42,  2
(24,.025) = 39.36
at the 5% level but not at the 2.5% level of significance.
(n − 1) s 2 37(67)
H 0 :   100; H 1 :   100;  = =
2 2 2
d. = 24.79,
 2
100
 2
(37,.100) = 48.36,  2
(37,.05) = 52.19
Therefore, do not reject H 0
at any common level of significance.

9.48 H 0
:  2  500; H 1 :  2  500; reject H 0
if  2 (7,.10) > 12.02
(n − 1) s 2 7(933.982)
2 = = = 13.0757, Therefore, reject H at the 10% level
 2
500 0
9.49 a. s2 = 5.1556
b. H 0 :  2  2.25; H 1 :  2  2.25; reject H 0
if  2 (9,.05) > 16.92
9(5.1556)
2 = = 20.6224. Reject H 0
at the 5% level
2.25
9.50 H 0
:  2 = 300; H 1 :  2  300;
29(480)
2 = = 46.4, p-value = .0214. Reject H 0
at the 5% level
300
9.51 The hypothesis test assumes that the population values are normally distributed
H 0 :  = 2.0; H 1 :   2.0; reject H 0 if  (19,.05) > 30.14
2
19(2.36) 2
2 = = 26.4556. Do not reject H at the 5% level
(2) 2 0
9.52 H 0
:   18.2; H 1 :   18.2;
24(15.3) 2
 =
2
= 16.961.
(18.2) 2
Do not reject H 0 at the 10% level since  2 >15.66 =  2 (24,.10)
9.53 a. The null hypothesis is the statement that is assumed to be true unless there is sufficient
evidence to suggest that the null hypothesis can be rejected. The alternative
hypothesis is the statement that will be accepted if there is sufficient evidence to
reject the null hypothesis
b. A simple hypothesis assumes a specific value for the population parameter that is
being tested. A composite hypothesis assumes a range of values for the population
parameter.
c. One sided alternatives can be either a one-tailed upper (> greater than) or a one-tailed
lower (< less than) statement about the population parameter. Two sided alternatives
are made up of both greater than or less than statements and are written as ( not
equal to).
d. A Type I error is falsely rejecting the null hypothesis. To make a Type I error, the
truth must be that the null hypothesis is really true and yet you conclude to reject the
null and accept the alternative. A Type II error is falsely not rejecting the null
hypothesis when in fact the null hypothesis is false. To make a Type II error, the null
hypothesis must be false (the alternative is true) and yet you conclude to not reject the
null hypothesis.
e. Significance level is the chosen level of significance that establishes the probability of
a making a Type I error. This is represented by alpha. The power of the test, 1 – β, is

the ability of the hypothesis test to identify correctly a false null hypothesis and reject
it.
9.54 The p-value indicates the likelihood of getting the sample result at least as far away from
the hypothesized value as the one that was found, assuming that the distribution is really
centered on the null hypothesis. The smaller the p-value, the stronger the evidence against
the null hypothesis.
9.55 a. X = 45, s = 10.5409

b. H :
0
= 40; H 1 :   40; reject H 0
if t(9,.05) > 1.833
45 − 40
t= = 1.50, therefore, do not reject H 0
at the 5% level
10.5409 10
9.56 a. False. The significance level is the probability of making a Type I error – falsely
rejecting the null hypothesis when in fact the null is true.
b. True
c. True
d. False. The power of the test is the ability of the test to correctly reject a false null
hypothesis.
e. False. The rejection region is farther away from the hypothesized value at the 1%
level than it is at the 5% level. Therefore, it is still possible to reject at the 5% level
but not at the 1% level.
f. True
g. False. The p-value tells the strength of the evidence against the null hypothesis.
9.57 a. X = 333 / 9 = 37; sx = 312 8 = 6.245

H : 0
 40; H 1 :   40; reject H 0
if t8,.05 < -1.86
37 − 40
t= = -1.44, therefore, do not reject H 0
at the 5% level
6.245 9

776 − 800
9.58 a.  = P( Z  ) = P(Z < -2) = .0228
120 100)
776 − 740
b.  = P( Z  ) = P(Z > 3) = .0014
120 100
c. i) smaller ii) smaller
d. i) smaller ii) larger
9.59 a. H : p  .25; H : p  .25; reject H

0 1 0
if z.05 < -1.645
.215 − .25
z= = -1.90, therefore, reject H 0 at the 5% level
(.25)(.75) / 545
p − .25
b. H 0 is rejected when < -1.645 or when p < .2195
(.25)(.75) / 545
.2195 − .2
i) power = 1 – P(Z > ) = 1 – P(Z > 1.14) = .8729
(.2)(.8) / 545
.2195 − .25
ii) power = 1 – P(Z > ) = 1 – P(Z > -1.64) = .0505
(.25)(.75) / 545
.2195 − .3
iii) power = 1 – P(Z > ) = 1 – P(Z > -4.1) = .0000
(.3)(.7) / 545
9.60 H : p = .5; H : p  .5;

0 1
.4808 − .5
z= = -.39, p-value = 2[1-FZ(.39)] = 2[1-.6517] = .6966
(.5)(.5) /104
Therefore, reject H 0 at levels in excess of 69.66%
9.61 H : p = .5; H : p  .5;

0 1
.576 − .5
z= = 1.51, p-value = 1-FZ(1.51) = 1-.9345 = .0655
(.5)(.5) / 99
9.62 H : p  .25; H : p  .25; reject H

0 1 0
if z.05 > 1.645
.3333 − .25
z= = 2.356, therefore, reject H 0
at the 5% level
(.25)(.75) /150
9.63 H : p  .2; H : p  .2;

0 1
.2746 − .2
z= = 2.22, p-value = 1-FZ(2.22) = 1-.9868 = .0132
(.2)(.8) /142
9.64 Cost Model where W = Total Cost: W = 1,000 + 5X

W = 1, 000 + 5(400) = 3, 000

125
 2W = (5) 2 (625) = 15, 625,  W = 125,  W = = 25
25
H 0
: W  3000; H 1: W  3000;
Using the test statistic criteria: (3050 – 3000)/25 = 2.00 which yields a p-value of .0228,
therefore, reject H 0 at the .05 level.
Using the sample statistic criteria: X crit = 3, 000 + (25)(1.645) = 3041.1 , X calc = 3, 050 ,
since X calc = 3, 050 > X crit = 3041.1 , therefore, reject H 0
at the .05 level.
9.65 H 0
:   39, H 1 :   39
40 − 39
t40 = = 1.19 . Probability of X = 40 given that  is 39 is .1170. Therefore, the
50
71
Vice President’s claim is not very strong.
9.66 Per capita consumption of fruits and vegetables

x = 172.79; s = 19.254
x −
H 0 :   170; H 1 :   170; . Reject if s n0  tn−1,
172.79 − 170
= 8.075 Since 8.075 is greater than the critical value of 1.645,
19.254 3108
there is sufficient evidence to reject the null hypothesis.
Per capita consumption of snack foods

x = 114.11; s = 9.541
x − 0
H : 0
 114; H 1 :   114; . Reject if
s n
 tn −1,
114.11 − 114
= 0.66. Since 0.66 is greater than the critical value of -1.645, there is no
9.541 3108
sufficient evidence to reject the null hypothesis.
Per capita consumption of soft drinks

x = 66.81; s = 7.5
x − 0
H : 0
 65; H 1 :   65; . Reject if
s n
 tn −1,
66.81 − 65
= 13.487. Since 13.487 is greater than the critical value of -1.645,
7.5 3108
there is no sufficient evidence to reject the null hypothesis.

Per capita consumption of meat

x = 70.38; s = 12.694
x − 0
H : 0
 70; H 1 :   70; . Reject if
s n
 tn −1,
70.38 − 70
= 1.69. Since 1.69 is greater than the critical value of 1.645,
12.694 3108
9.67 Obesity rates of adults in the U.S. population.

x = 28.29; s = 3.625
x −
H 0 :   28; H 1 :   28; . Reject if s n0  tn−1,
28.29 − 28
3.625 3140
Low-income preschool obesity rate in the U.S. population

x = 14.19; s = 3.716
x −
H 0 :   13; H 1 :   13; . Reject if s n0  tn−1,
14.19 − 13
3.716 2691
9.68 H 0
:   40, H 1 :   40; X = 49.73  42.86 reject H 0
One-Sample T: Salmon Weight
Test of mu = 40 vs mu > 40
Variable N Mean StDev SE Mean

Salmon Weigh 39 49.73 10.60 1.70
Variable 95.0% Lower Bound T P

Salmon Weigh 46.86 5.73 0.000
At the .05 level of significance we have strong enough evidence to reject Ho that the true
mean weight of salmon is no different than 40 in favor of Ha that the true mean weight is
significantly greater than 40.
X crit = Ho + tcrit ( S x ) : 40 + 1.686(1.70) = 42.8662

Population mean for  = .50 (power=.50): tcrit = 0.0: 42.8662 + 0.0(1.70) = 42.8662
Population mean for  = .25 (power=.75): tcrit = .681: 42.8662 + .681(1.70) = 44.0239

Power curve
For beta = .50 .25 .10 and .05
1.0
0.9
0.8
0.7
0.6
Power
0.5
0.4
0.3
0.2
0.1
0.0
40 41 42 43 44 45 46
PopMean
9.69 a. H : 0
= 1.6; H 1 :   1.6; reject H 0
if |z.05|> 1.645
1.615 − 1.6
z= = 1.20, p-value =2[1-FZ(1.2)]= 0.2302.
.05 16
Do not reject H 0 at the 10% level
b. H 0
:  = .05; H 1 :   .05; reject H 0
if  2 (15,.10)  22.31
15(.086) 2
2 = = 44.376. Reject H at the 10% level
(.05) 2 0
9.70 a. Assume that the population is normally distributed

One-Sample T: Grams:
Test of mu = 5 vs mu not = 5
Variable N Mean StDev SE Mean
Grams:11-34 12 4.9725 0.0936 0.0270
Variable 95.0% CI T P
Grams:11-34 ( 4.9130, 5.0320) -1.02 0.331
x = 4.9725; s = .0936 , H :0

= 5; H 1 :   5; reject H 0
if |t(11, .025| > 2.201
4.9725 − 5
t= = -1.018. Do not reject H 0
at the 5% level
.0936 12

b. Assume that the population is normally distributed

H 0 :  = .025; H 1 :   .025; reject H 0 if  (11,.05)  19.68
2
11(.0936) 2
2 = = 154.19. Therefore, reject H at the 5% level
(.025) 2 0
9.71 x = 333 / 9 = 37; s = 312000 8 = 197.484

H 0
:   6; H 1 :   6; reject H 0
if  2 (8,.10)  13.36
8(197.484)2
2 = = 8666.651 . reject H at the 10% level
(6)2 0
9.72 Obesity rates of adults in the U.S. population.

x = 28.29; s = 3.625
x −
H 0 :   28; H 1 :   28; . Reject if s n0  tn−1,
28.29 − 28
3.625 3140
Low-income preschool obesity rate in the U.S. population

x = 14.19; s = 3.716
x −
H 0 :   13; H 1 :   13; . Reject if s n0  tn−1,
14.19 − 13
3.716 2691
9.73 Obesity rates of adults in California

x = 23.34; s = 3.224
x − 0
H :
0
 28; H 1 :   28; . Reject if
s n
 tn −1,
23.34 − 28
= -11.00. Since -11.00 is smaller than the critical value of 1.645,
3.224 58
Low-income preschool obesity rate in California

x = 16.18; s = 2.535
x −
H 0 :   13; H 1 :   13; . Reject if s n0  tn−1,

16.18 − 13
2.535 57
Obesity rates of adults in Michigan.

x = 29.49; s = 1.397
x − 0
H :0
 28; H 1 :   28; . Reject if
s n
 tn −1,
29.49 − 28
1.397 83
Low-income preschool obesity rate in Michigan

x = 14.02; s = 2.533
x −
H 0 :   13; H 1 :   13; . Reject if s n0  tn−1,
14.02 − 13
2.533 82
Obesity rates of adults in Minnesota.

x = 27.24; s = 0.907
x − 0
H : 0
 28; H 1 :   28; . Reject if
s n
 tn −1,
27.24 − 28
0.907 87
Low-income preschool obesity rate in Minnesota

x = 12.51; s = 2.919
x −
H 0 :   13; H 1 :   13; . Reject if s n0  tn−1,
12.51 − 13
2.919 87
Obesity rates of adults in Florida.

x = 26.82; s = 4.054
x − 0
H : 0
 28; H 1 :   28; . Reject if
s n
 tn −1,

26.82 − 28
4.054 67
Low-income preschool obesity rate in Florida

x = 12.51; s = 2.919
x −
H 0 :   13; H 1 :   13; . Reject if s n0  tn−1,
13.53 − 13
= 0.993. Since 0.993 is smaller than the critical value of 1.645,
4.338 66
9.74 Mean weights of Men in the first interview

x = 27.98; s = 5.468
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
27.98 − 30
= -16.985. Since -16.985 is smaller than the critical value of -1.645,
5.468 2108
Mean weights of Men in the second interview

x = 28.07; s = 5.447
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
28.07 − 30
5.447 1925
There is no difference in the results obtained from the first and second
Interviews for men.
Mean weights of Women in the first interview

x = 28.93; s = 7.022
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
28.93 − 30
7.022 2274
Mean weights of Women in the second interview

x = 29.02; s = 7.071

x − 0
H : 0
 30; H 1 :   30; . Reject if
s n
 −tn −1,
29.02 − 30
7.071 2132
Interviews for women.
9.75 Mean weights of Immigrants in the first interview

x = 27.63; s = 5.272
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
27.63 − 30
5.272 870
Mean weights of Immigrants in the second interview

x = 27.75; s = 5.317
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
27.75 − 30
5.317 787
Interviews for immigrants
9.76 Mean weights of White people in the first interview

x = 27.85; s = 6.065
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
27.85 − 30
6.065 2357

Mean weights of White people in the second interview

x = 27.92; s = 6.117
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
27.92 − 30
6.117 2213
Interviews for White people.
9.77 Mean weights of Hispanic people in the first interview

x = 28.83; s = 5.566
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
28.83 − 30
5.566 999
Mean weights of Hispanic people in the second interview

x = 28.90; s = 5.603
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
28.90 − 30
5.603 934
Interviews for Hispanic people.
9.78 Mean weights of people who have been diagnosed with high blood pressure in the
first interview
x = 30.15; s = 6.613
x −
H 0 :   30; H 1 :   30; . Reject if s n0  −tn−1,
30.15 − 30
6.613 1522
Mean weights of people who have been diagnosed with high blood pressure in
the second interview
x = 30.29; s = 6.651

x − 0
H : 0
 30; H 1 :   30; . Reject if
s n
 −tn −1,
30.29 − 30
6.651 1420
Interviews for people diagnosed with high blood pressure.

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Statistics For Business and Economics 8th Edition Newbold Solutions Manual

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Statistics for Business and Economics

8th Edition Newbold Solutions Manual

9.1 H : p  .2; H : p  .2;

9.4 a. European perspective:

b. U.S. farmer perspective:

H : T  T Bush with more votes

H : T T Gore with more votes

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.14 Test H :0

9.15 Test H :0

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.26 The population values must be assumed to be normally distributed.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.30 H : p  .25; H : p  .25;

9.31 H : p  .25; H : p  .25; reject H

9.32 H : p = .5; H : p  .5;

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.33 H : p = .5; H : p  .5; reject H

9.34 H : p = .5; H : p  .5;

9.36 H : p  .75; H : p  .75;

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.38 What is the probability of Type II error if the actual proportion is

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

the decision is to reject the null hypothesis.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.55 a. X = 45, s = 10.5409

9.57 a. X = 333 / 9 = 37; sx = 312 8 = 6.245

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.59 a. H : p  .25; H : p  .25; reject H

9.60 H : p = .5; H : p  .5;

9.61 H : p = .5; H : p  .5;

9.62 H : p  .25; H : p  .25; reject H

9.63 H : p  .2; H : p  .2;

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

W = 1, 000 + 5(400) = 3, 000

9.66 Per capita consumption of fruits and vegetables

Per capita consumption of snack foods

Per capita consumption of soft drinks

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Per capita consumption of meat

9.67 Obesity rates of adults in the U.S. population.

Low-income preschool obesity rate in the U.S. population

Variable N Mean StDev SE Mean

Variable 95.0% Lower Bound T P

X crit = Ho + tcrit ( S x ) : 40 + 1.686(1.70) = 42.8662

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

9.70 a. Assume that the population is normally distributed

x = 4.9725; s = .0936 , H :0

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

b. Assume that the population is normally distributed

9.71 x = 333 / 9 = 37; s = 312000 8 = 197.484

9.72 Obesity rates of adults in the U.S. population.

Low-income preschool obesity rate in the U.S. population

9.73 Obesity rates of adults in California

Low-income preschool obesity rate in California

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall.

Obesity rates of adults in Michigan.