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Problem Set 1

This document contains 6 problems related to statistical hypothesis testing. Problem 1 involves a z-test to determine if a marketer should locate a retail store in an area based on average income. Problem 2 uses a z-test of proportions to determine if a firm should launch internationally. Problem 3 applies a t-test to average income data. Problem 4 performs a t-test comparing average ages between males and females. Problem 5 uses a z-test of proportions to analyze data from two airports. Problem 6 applies a t-test to compare average payback periods between financial institutions.

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Salma-Petra Zuraik
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35 views1 page

Problem Set 1

This document contains 6 problems related to statistical hypothesis testing. Problem 1 involves a z-test to determine if a marketer should locate a retail store in an area based on average income. Problem 2 uses a z-test of proportions to determine if a firm should launch internationally. Problem 3 applies a t-test to average income data. Problem 4 performs a t-test comparing average ages between males and females. Problem 5 uses a z-test of proportions to analyze data from two airports. Problem 6 applies a t-test to compare average payback periods between financial institutions.

Uploaded by

Salma-Petra Zuraik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Problem

set 1
Monday, March 20, 2023 4:47 PM

P 27

1.
A) Null: HO: u=> 10,000
Alternative: H1: u<10,000

At 95% Z=1.96

12,000-1.96*9,000/√25= 8,472
12,000+1.96*9,000/√25= 15,528

Yes, the marketer should locate a retail store in the area.

B) No my answer will not be different if the market raises the minimum capita income requirement from $10,000 to $10,500, because $10,500 still
falls in the interval where we fail reject the null hypothesis

2. .

H0: II < .75


Ha: II ≥ .75
Z Test of proportions
1 tailed
IF Z cal>= z crit , reject H0
Z crit = 2.33
Z cal = - 13.75
Since -13.75< 2.33, We fail to reject H0
With 99 % confidence, we can conclude that at least 75% of people have not tried product. Firm XYZ should not launch
internationally

3.
A) Age is being measured
Test of average and means

Null: H0: u< $10,000


Alternative: Ha: u=> $10,000

One tailed test

T test for single mean, Test is under 30

N-1=24
Critical value = 1.711

Observed mean = 12000


Std = 9000
= 2000/1800 = 1.11

Since 1<1.711, we cannot reject the null hypothesis


With 95% confidence we conclude that mean income is not at least $10,000

4.
Age is measures
Null: mu 1 = 1 mu2.
Alternative: mu 1 ≠ mu 2
T test for 2 independent means
2 tailed test
Reject H0 if tcal ≥ t crit
Z .01 = 0.01 2.58
T cal = 6.67
Since 6.67> 2.58, we reject H0
We are 99% confident that there os a difference between average age of male and female consumers; the females are older ( mean
of women 30 vs 28 for men)

5. .
Test of proportions

Null: H0: Pie<0.290


Alternative: Ha: Pie ≥ 0.20

One tailed z test of proportions

One tailes Z.01= 2.33

130/500 = 0.26

(0.26 − 0.20) / 𝑠𝑞𝑟𝑡[0.20(1 − 0.20) / 500] = 3.06

3.06> 2.33

Reject the null hypothesis.

We are 99% confident that the shop at Dulles airport is attracting as much of the travelers as the other airport.

P28

6. H0: u1=u2
Ha: u1≠ u2

Two tailed test t test 2 independent means


Z test because n> 30

Reject H0 if I tcal I>= tcrit, otherwise we cannot reject H0

Two take Z.01=1.96

DF=n1+n2-2
100+64-2=162
t150,0.05/2 = 0.025 = 0.025 1.976

8.7-7.1/{(100-1*(2.23)^2+64-1*0.77^2/100-64-2}(1/100+1/64)= 6.58

Reject null hypothesis


With 95% confidence, we conclude that there is a difference between average payback period for saving and loans compares to
other financial institution

P 44

1. Importance is being measure


Interval data

H0: There is not difference between men and women


Ha: There are differences between men and women

Two tailes test


T test for 2 independent means

For two tailed test, the decision rule involves the absolute value of tcal

Two tailed test .0500 = 1.96

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