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ECO 202: Statistical Methods For Business and Economics
ECO 202: Statistical Methods For Business and Economics
Null hypothesis: µ = 16
t= 16-15.8/ .50/ √10
Alternative hypothesis: µ ≠ 16
= -1.266
Given,
At 5% significance level, value of t for df 9 is
Df= 10-1= 9 2.26
N=10
µ= 15.8 The computed t value is smaller than the table
X = 16 value of t . So the difference is insignificant.
S= .50
So the hypothesis is accepted .
Do it!
A sample of 25 Panasonic AAA batteries gave a sample mean zinc mass of
2.06g and a sample standard deviation of .141g.
• Test the hypothesis that the mean mass of batteries is 4 g at 5% level of
significance.
T test continues
Mr Fox grows tomatoes in two separate fields. When the tomatoes are ready to be
picked, he is curious as to whether the sizes of his tomato plants differ between the two
fields. He takes a random sample of plants from each field and measures the heights of
the plants . Here is a summary of the results:
Field A Field B
No. of plants 24 22
• There are two means in this math
• So we denote one as µa and the other as µb
• So we get,
Null hypothesis, H0 : µa = µb
Alternative hypothesis, H1 : µa ≠ µb
α= 0.05
Formula