Chapter 7 HW

7.5
7.5
7.7
7.7 (a) (b)
 7.7 (c)
• Would you conclude that sales are up at
all stores?

• What does Ha say?

• Does it say anything about ALL stores?
7.36 (a)
7.36 (a)
7.36 (b)
 7.36 (c)
• No outliers, but right skew in distribution of
spending amounts

• Is it still OK to use the t-distribution?

• The MAJOR requirement for using T-test

is…
7.54
7.54 (b)
 7.54 (b)
• The interval (0.02,2.78)—What does it
represent?
• If we gave flat screen monitors to everyone,
the mean amount that they would rate them,
minus the mean rating of the regular monitors
• In other words, it is our estimate for μ1-μ2
• We are 95% confident in this estimate
• The true difference of the means could be
higher or lower
 7.54 (c)
• Ho: μ1=μ2
• Ho: μ1≠μ2
• Alpha=0.05

• If we subtract μ2 from both sides of the equality and inequality

above, what do we get?
• Ho: μ1-μ2=μ2-μ2 leads to Ho: μ1-μ2 =0 and
• Ha: μ1-μ2≠μ2-μ2 leads to Ha: μ1- μ2 ≠ 0
• So we want to know if μ1- μ2 =0 and we want to be 95%
confident in the answer
• The estimate from the 95% confidence interval for
μ1-μ2=(0.02,2.78)
• So…
 Probability Set-Up is The Same
• Confidence Interval
1. Mu may be above 2.78 or below
0.02
2. So error could occur above or
below estimate of mu1-mu2
3. Confidence is 95% so risk is 5%
• Hypothesis test
1. We reject Ho for Ha if (xbar1-
xbar2) is either very big or very
small
2. If Ho is true, then we will make a
mistake if (xbar1-xbar2) is either
very big or very small
3. Risk of this mistake is 5%, so 95%
confident
7.63
7.63
7.64
7.64 (a & b)
 7.64 (c)

• If we reject Ho for Ha, what are we saying?

• What does that have to do with the
statement above?
 7.64 (d)
• Say we reject Ho for Ha
• What have we learned?

• What is a next natural question you would

ask if you were actually looking for an
apartment?