CH 10 – Matched Pairs – Hypothesis Test

Ralph's Vonn's Difference

1 Milk 2.39 2.59 0.20
2 Eggs 1.79 2.19 0.40
3 Cereal 3.18 3.45 0.27
4 Lettuce 0.99 0.89 -0.10
5 Apples 1.29 1.45 0.16
6 Rice 1.40 1.60 0.20
7 Pasta 1.30 1.35 0.05
8 Soup 1.50 1.65 0.15
9 Peanut Butter 3.45 4.10 0.65
10 Pretzels 2.60 2.80 0.20
11 Jelly 2.85 2.90 0.05
12 Potatoe Chips 2.25 2.40 0.15
13 Yogurt 0.80 0.70 -0.10
14 Cheese 1.88 2.39 0.51
15 Lunch Meats 4.20 4.30 0.10
16 Soda 1.30 1.19 -0.11
17 Bread 1.95 2.05 0.10

Totals 35.12 38.00 2.88

Standard 0.205441
Deviation

Conduct a hypothesis test for: Is their a difference between Ralph’s and Vonn’s
prices? Use a level of significance of .05 and do all 5 steps.

Using The critical value approach, when would you start rejecting the null
hypothesis.

If The question was changed to: Is Vonn’s more expensive then Ralph’s: How
would the hypothesis test change?

Assuming this new approach or question: Using The critical value approach,
when would you start rejecting the null hypothesis.
CH 10 – Matched Pairs – Hypothesis Test

Women Men Difference

n=12

Totals 38.04 33.48 4.56

Standard 0.51
Deviation

Conduct a hypothesis test for: Is their a difference between Women and Mens
health and beauty prices? Use a level of significance of .05 and do all 5 steps.

Using The critical value approach, when would you start rejecting the null
hypothesis.

If The question was changed to: Is Women more expensive then Men: How
would the hypothesis test change?

Assuming this new approach or question: Using The critical value approach,
when would you start rejecting the null hypothesis.
CH 10 – 2 Independent Population Means – Sigma Known – CI & Hypothesis Test

Male vs Female FICO credit scores. You have 2 independent populations and you
would like to see if there is a difference between female and male credit scores. You
would like to construct a confidence interval as well as do a hypothesis test for the
information below.
Female Male

n1 = 63 n2 = 58

x1 = 681 x2 = 673

1 = 59.2 2 = 54.1

A. Construct a 95% confidence interval for the mean difference between female and
males.

B. Follow your 5 step process and carry out a hypothesis test to see if there is a
difference between female and males. Use a level of significance of .05

C. At what critical value will you start to reject the null hypothesis?

D. How would your results and hypothesis test change if we wanted to test to see if
female was higher than male? Also what would be the critical values that you
would start rejecting the null hypothesis at?
CH 10 – 2 Independent Population Means – Sigma Known – CI & Hypothesis Test

You have 2 similar restaurants operating in near by towns that have similar clientele and
demographics. Also the amount of gross sales are very similar for the 2 locations.
While doing payroll, you have noticed that amount you include on payroll for tips is
different. You would like to construct a confidence interval as well as do a hypothesis
test for the information below.
City 1 City 2

n1 = 64 n2 = 50

x1 = $146.00 x2 = $133.50

1 = $36.00 2 = $36.00

A. Construct a 90% confidence interval for the mean difference between these 2
cities.

B. Follow your 5 step process and carry out a hypothesis test to see if there is a
difference between the two means. Use a level of significance of .05

C. At what critical value will you start to reject the null hypothesis?

D. How would your results and hypothesis test change if we wanted to test to see if
City 1 was more than City 2? Also what would be the critical values that you
would start rejecting the null hypothesis at?
CH 10 – 2 Independent Population Means – Sigma Known – CI & Hypothesis Test

You would like to compare SDSU and San Marco State starting salaries of business
majors. You would like to construct a confidence interval as well as do a hypothesis
test for the information below.
SDSU CSU San Marco

n1 = 80 n2 = 70

x1 = $57,000 x2 = $53,800

1 = $4,000 2 = $3,000

A. Construct a 90% confidence interval for the mean difference between these 2
schools.

B. Follow your 5 step process and carry out a hypothesis test to see if SDSU salary
is greater than CSU San Marco salary. Use a level of significance of .05

C. At what critical value will you start to reject the null hypothesis?

D. How would your results and hypothesis test change if we wanted to test to see if
there was a difference between SDSU and CSU San Marco and the critical
values that you would start rejecting the null hypothesis at?
Chapter 11 – Single Population Variance and Standard Deviation – CI

You would like to estimate the variance and standard deviation for credit scores based
of FICO. These scores are thought to be normally distributed. You randomly select 36
credit scores get a standard deviation of 56.5.

Using a 95% confidence interval, estimate the variance of credit scores.

Using a 95% confidence interval, estimate the standard deviation of credit scores.
Chapter 11 – Single Population Variance and Standard Deviation–CI&Hyp - GPA

You would like to estimate the variance of GPA’s at SDSU. You randomly select
14 students and get a standard deviation of .981. Construct a 90% confidence
interval of the population variance of GPA’s for SDSU.

Using the previous information from SDSU GPA’s:

You would like to do a hypothesis test to see if the variability of GPA’s at SDSU
has increased from its historical average variance of .80. Use a level of
significance of .05 and after doing the hypothesis test, what critical value would
be used for this test? If the test statistic was equal to 35, what would be the
probability associated with this test statistic?
Chapter 11 – Single Population Variance and Standard Deviation – CI

You would like to estimate the variance and standard deviation for the amount of
time buses are early or late to their stop. These times are thought to be normally
distributed. You randomly select 53 bus stop times and get a standard deviation
of 2.43 minutes. Using an 80% confidence interval, estimate the variance and
standard deviation of bus stop times.
Chapter 11 – Single Population Variance and Standard Deviation – Hyp

You would like to see if the variability of credit scores have increased. The
standard deviation of credit scores 2 years ago was 48 and it was thought that
these scores were normally distributed. You would like to see if they have
increased so you randomly select 36 FICO credit scores and get a sample
standard deviation is 56.5. At the level of significance of .05 see if FICO credit
scores variability has increased.

Do the 5 step process to conduct a hypothesis test.

Also at what critical value would you reject the null hypothesis?

If the question asked has the variability of FICO scores changed, how would the
hypothesis change and what parts would be different? At what critical value
would you reject the null hypothesis?
Chapter 11 – Single Population Variance and Standard Deviation – Hyp

The variability of oil prices per barrel have been very stable for the past 26
weeks. You would like to see if the variability of gas prices in San Diego has
changed. The standard deviation of gas prices during periods of such stability
have been 30 cents and it was thought that these prices were relatively normally
distributed. You would like to see if they have changed so you randomly select
26 gas prices from this time period and get a sample standard deviation is 37.5
cents. At the level of significance of .05 see if gas prices variability has changed.

Do the 5 step process to conduct a hypothesis test.

Also at what critical value would you reject the null hypothesis?

If the question asked has the variability of gas prices increased, how would the
hypothesis change and what parts would be different? At what critical value
would you reject the null hypothesis?
Chapter 11 – 2 Population Variance and Standard Deviation – Hypothesis Test

Example: A B

63 s 82

32 n 29

Q1: Doing a hypothesis test, is variance B greater than variance A?

Q2: What is the critical value from the F table?

Q3: Doing a hypothesis test, is variance B different than variance A?

CH 11 – 2 Independent Population Variances & Standard Deviations - Hypothesis Test

You would like to compare SDSU and San Marco State variance in starting salaries of
business majors. Do a hypothesis test for the information below.
SDSU CSU San Marco

n1 = 43 n2 = 51

s1 = $3,950 s2 = $3,240

A. Follow your 5 step process and carry out a hypothesis test to see if SDSU
variance in starting salaries is larger than CSU San Marco variance in starting
salary. Use a level of significance of .05
.

B. At what critical value will you start to reject the null hypothesis?

C. How would your results and hypothesis test change if we wanted to test to see if
there was a difference between SDSU and CSU San Marco starting salary
variance. At what critical value will you start to reject the null hypothesis?
Chapter 12 – Goodness of Fit

Complete the table below and then answer the following questions:

Degrees in the work force was stated below by an economics firm for the San
Diego area.

Hypothesised Chi Square

Category Proportion Observed Expected Test Statistic

None 0.07 9

High School 0.12 17

Associate 0.22 48

Bachelor 0.37 75

Masters 0.14 15

Doctorate 0.08 6

1 170

Conduct a hypothesis test about the proportion of degrees in the work force for
the San Diego area. Use a level of significance of .05.

At what critical value would you start to reject the null hypothesis?
Chapter 12 – Goodness of Fit

Complete the table below and then answer the following questions:

Degrees in the work force was stated below by an economics firm for the San
Diego area.

Hypothesised Chi Square

Category Proportion Observed Expected Test Statistic

None 0.07 10

High School 0.12 15

Associate 0.22 45

Bachelor 0.37 70

Masters 0.14 20

Doctorate 0.08 10

1 170

Conduct a hypothesis test about the proportion of degrees in the work force for
the San Diego area. Use a level of significance of .05.

At what critical value would you start to reject the null hypothesis?
CH 12 – Goodness of Fit – Global GDP

Below are the stated proportions of Global GDP for the top 190 countries and a
sample of 700 items with some values filled out.

Global GDP
Alpha=.05

Hypothesised
Category Proportion Observed Expected Chi Square

USA 0.243 218 ??? ???

China 0.15 103

Japan 0.061 40

Germany 0.046 35

UK 0.033 23

India 0.033 22

France 0.032 18

Brazil 0.026 18

Italy 0.024 15

Canada 0.021 15

Country 11-20 0.136 81 ??? ???

Country 21-50 0.133 81

Country 51-100 0.052 25

Country 101-190 0.01 6

1 700 22.46303554
1. What is the expected value for USA?

2. What is the value for Chi Square for the USA portion?

3. What is the expected value for Country 11-20?

4. What is the value for Chi Square for Country 11-20 portion?

5. Construct a hypothesis test for the stated proportions, use the 5 step
approach and also state what your critical value would be.
Global GDP
Alpha=.05 CV = 22.362

Hypothesised
Category Proportion Observed Expected Chi Square

USA 0.243 218 170.1 13.48859494

China 0.15 103 105 0.038095238

Japan 0.061 40 42.7 0.170725995

Germany 0.046 35 32.2 0.243478261

UK 0.033 23 23.1 0.0004329

India 0.033 22 23.1 0.052380952

France 0.032 18 22.4 0.864285714

Brazil 0.026 18 18.2 0.002197802

Italy 0.024 15 16.8 0.192857143

Canada 0.021 15 14.7 0.006122449

Country 11-20 0.136 81 95.2 2.118067227

Country 21-50 0.133 81 93.1 1.572610097

Country 51-100 0.052 25 36.4 3.57032967

Country 101-190 0.01 6 7 0.142857143

1 700 22.46303554
DF 0.1 0.05 0.025

13 19.812 22.362 24.736

14 Wrong 21.064 23.685 26.119

Chapter 12 Goodness of Fit Grade Level Practice Problem

The enrollment data for a middle school is given below. In years past the school had similar enrollment
for each grade level.

Hypothesis
Category Proportion Observed Expected Chi^2

1st 39

2nd 31

3rd 28

4th 34

5th 41

6th 37

7th 33

8th 30

Total n= Chi^2

Complete the above table and then answer the following questions:

1. Construct a hypothesis test (5 step process) to see if the hypothesized proportions have
changed, use a level of significance of .05.

2. At what critical value would you start rejecting the null hypothesis?
Chapter 12 – Goodness of Fit

Complete the table below and then answer the following questions:

SDSU states that the same proportion of students are enrolled in these six
business majors.

Hypothesised Chi Square

Category Proportion Observed Expected Test Statistic

MIS 19

Finance 30

Accounting 23

Management 28

Marketing 32

Bus Admin 33

165

Conduct a hypothesis test about the proportion of students in each major. Use a
level of significance of .05.

At what critical value would you start to reject the null hypothesis?
CH 12 - Goodness of Fit - Multinomial

1. Below is a table of the hypothesized proportion of states usage of a specific

government program.

State Hypothesized Observed

Arizona .21 80
California .33 95
Colorado .18 70
New Mexico .12 65
Utah .16 60

Create the rest of the table (expected value and chi square) and compute the test
statistic. Conduct a hypothesis test and use a level of significance of .05. Also
identify the critical value for this test.
Chapter 12 Test of Independence Education Practice Problem

The quality of education and the level of education are given in the table below.

Education - Test of Independence

Observed: Quality
Average Outstanding Excellent
Some HS 35 45 20 100
HS Grad 30 45 25 100
Some College 20 50 30 100
College Grad 60 90 50 200

145 230 125 500

Expected: Quality
Average Outstanding Excellent
Some HS
HS Grad
Some College
College Grad

Chi^2 Quality
Average Outstanding Excellent
Some HS
HS Grad
Some College
College Grad

Complete the above table and then answer the following questions:

1. Construct a hypothesis test (5 step process) to see if quality of education is independent of the
level of education, use a level of significance of .05.

2. At what critical value would you start rejecting the null hypothesis?
Chapter 12 Test of Independence Health Ins Practice Problem

The size of the company and whether they have health Insurance are given in the table below.

Health Insurance - Test of Independence

Observed: Size
Small Medium Large
Yes 36 65 88 189
No 14 10 12 36

50 75 100 225

Expected: Size
Small Medium Large
Yes
No

Chi^2 Size
Small Medium Large
Yes
No

Complete the above table and then answer the following questions:

1. Construct a hypothesis test (5 step process) to see if size of the company is independent of
health insurance coverage, use a level of significance of .05.

2. At what critical value would you start rejecting the null hypothesis?
Chapter 12 Test of Independence Insurance Claim Practice Problem

The age of a driver and whether they file an insurance claim are given in the table below.

Insurance Claims - Test of Independence

Observed:
No Claim Claim
16 up to 25 170 74 244
25 up to 40 240 58 298
40 up to 55 400 44 444
55 and older 190 24 214

1000 200 1200

Expected:
No Claim Claim
16 up to 25
25 up to 40
40 up to 55
55 and older

Chi^2
No Claim Claim
16 up to 25
25 up to 40
40 up to 55
55 and older

Complete the above table and then answer the following questions:

1. Construct a hypothesis test (5 step process) to see if the age of a driver is independent of
whether they file an insurance claim, use a level of significance of .05.

2. At what critical value would you start rejecting the null hypothesis?
Chapter 12 Test of Independence Job Pressure Practice Problem

Job Pressure and age groups are given in the table below.

Job Pressure - Test of Independence

Observed: Pressure
Low Medium High
AGE Less than 25 20 18 22 60
25 up to 40 50 46 44 140
40 up to 60 58 63 59 180
60 and older 34 43 43 120

162 170 168 500

Expected:
Low Medium High
Less than 25
25 up to 40
40 up to 60
60 and older

Chi^2
Low Medium High
Less than 25
25 up to 40
40 up to 60
60 and older

Complete the above table and then answer the following questions:

1. Construct a hypothesis test (5 step process) to see if job pressure is independent of age group,
use a level of significance of .05.

2. At what critical value would you start rejecting the null hypothesis?
Chapter 12 Test of Independence Quality & Rep Practice Problem

The quality of management and the reputation of management are given in the table below.

Quality & Reputation - Test of Independence

Reputation
Observed:
Quality Excellent Good Fair
Excellent 40 25 5 70
Good 35 35 10 80
Fair 25 10 15 50

100 70 30 200

Expected:
Excellent Good Fair
Excellent
Good
Fair

Chi^2
Excellent Good Fair
Excellent
Good
Fair

Complete the above table and then answer the following questions:

1. Construct a hypothesis test (5 step process) to see if quality of management is independent of

the reputation of management, use a level of significance of .05.

2. At what critical value would you start rejecting the null hypothesis?
Chapter 12 Test of Independence State & Age Practice Problem

The age group and state they are from are given in the table below.

State & Age - Test of Independence

Observed: States
A B C
Group 1 25 30 40 95
Group 2 60 40 50 150
Group 3 75 80 90 245
Group 4 35 35 20 90
Group 5 40 55 70 165

235 240 270 745

Expected: States
A B C
Group 1
Group 2
Group 3
Group 4
Group 5

Chi^2 States
A B C
Group 1
Group 2
Group 3
Group 4
Group 5

Complete the above table and then answer the following questions:
1. Construct a hypothesis test (5 step process) to see if the age group is independent of the state,
use a level of significance of .05.

2. At what critical value would you start rejecting the null hypothesis?