1.
np0(1-p0) = 854 * 0.029 * (1 - 0.029) = 24.04779
Because np0(1-p0) = 24.0 > 10, the sample size is less than 5% of the population size, and sample can be assumed to be a random sample, the requirements for testing the hypothesis are satisfied.
H0: p = 0.029 versus H1: p > 0.029
Standard error of sample proportion, SE = sqrt(p0(1-p0)/n) = sqrt(0.029 * (1-0.029)/854) = 0.005742218
Sample proportion, p = 27/854 = 0.03161593
Test statistic , z = (p - p0) / SE = (0.03161593 - 0.029) / 0.005742218 = 0.46
P-value = P(z > 0.46) = 0.323
A. Since p-value > alpha, do not reject the null hypothesis.
2.
(a)
H0:
= 35.1 million shares
H1:
35.1 million shares
(b)
Standard error of mean, SE = s / sqrt(n) = 14.5 / sqrt(30) = 2.6473
Degree of freedom = n-1 = 30-1 = 29
Critical t value at df = 29 and 95% confidence interval is 2.045
Lower Bound = 26.5 - 2.045 * 2.6473 = 21.086
Upper Bound = 26.5 - 2.045 * 2.6473 = 31.914
(c)
Since the value 35.1 million shares does not lie in the interval,
D. Reject the null hypothesis because
= 35.1 million shares does not fall in the confidence
interval.
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10.2.17 Homework Help!
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