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Reserve Problems Chapter 10 Section 1 Problem 1 Consider the hypothesis test Ho : M1 - H2 = 0) against Hi : M1 - H2 + 0 sampl

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Answer #1

We can find the sample mean of the both data set using excel function =AVERAGE( ) and =STDEV.S() respectively.

B D E TI А Hourly 1 Salaried 2 35 34 3 39 30 4 32 33 5 32 =AVERAGE(A2:A19) 34.5556 32 =AVERAGE(D2:017) 31.9375 31 6 33 7 30 2

Но11 - 112 = 0 vs 1596087686770_blob.png11 - 112 ≠ 0   

Given : 1 = 34.5556  ,01 = 3.7, n1 = 18 and  //img.homeworklib.com/questions/ad842ef0-0fce-11eb-a179-c74271a1379d.png?x-oss-process=image/resize,w_560 = 31.9375, GO = 1.8, n2 = 16

Z0 = \frac{\bar{x}_1 -\bar{x}_2 }{\sqrt{\frac{\sigma _1^2}{n_{1}}+\frac{\sigma _2^2}{n_{2}}}}

= \frac{34.5556-31.9375}{\sqrt{\frac{3.7^2}{18}+\frac{1.8^2}{16}}}

= 2.6181 / 0.9814

Z0 = 2.6678

P value : 2*P ( z ≥ 2.6678 ) = 2*0.0038

P value = 0.0076

b) 95% confidence interval :

C = 0.95

So α = 1 - C = 1 - 0.95 = 0.05

α/2 = 0.025

Z score correponding to area 0.0250 is 1.96 on the z score table.

Therefore Z = 1.96 ---( from z score table )

Confidence interval is given by,

Lower bound = ( 1 - 1596088476556_blob.png ) - E  

Upper bound = ( 1 - 1596088476669_blob.png ) + E  

E = z*\sqrt{\frac{\sigma _1^2}{n_1}+\frac{\sigma _2^2}{n_2}}

= 1.96*\sqrt{\frac{3.7^2}{18}+\frac{1.8^2}{16}}

= 1.9235

( 1 - 1596088476669_blob.png ) = 2.6181

Lower bound = ( 1 - 1596088476556_blob.png ) - E = 2.6181 - 1.9235 = 0.695

Upper bound = ( 1 - 1596088476669_blob.png ) + E = 2.6181 + 1.9235 = 4.542

0.695  ≤ 11 - 112  ≤ 4.542

c) Given : α = 0.05

As Ha contain ≠  sign , this is two tail test.

α/2 = 0.025

Therefore Z = 1.96

\sqrt{\frac{\sigma _1^2}{n_1}+\frac{\sigma _2^2}{n_2}} = \sqrt{\frac{3.7^2}{18}+\frac{1.8^2}{16}} = 0.9814

Power = P( reject the null hypothesis H0 , when it is false )

P\left (-1.96\leq \frac{\bar{x}_1 -\bar{x}_2 }{\sqrt{\frac{\sigma _1^2}{n_{1}}+\frac{\sigma _2^2}{n_{2}}}}\leq 1.96 \right )

= P\left (-1.96*\sqrt{\frac{\sigma _1^2}{n_{1}}+\frac{\sigma _2^2}{n_{2}}}\leq {\bar{x}_1 -\bar{x}_2 }\leq 1.96*\sqrt{\frac{\sigma _1^2}{n_{1}}+\frac{\sigma _2^2}{n_{2}}} \right )

= P\left (-1.96*0.9814\leq {\bar{x}_1 -\bar{x}_2 }\leq 1.96*0.9814 \right )

= P ( -1.9235  ≤  {\bar{x}_1 -\bar{x}_2 }  ≤ 1.9235 )

= P\left (\frac{-1.9235-2}{0.9814}\leq \frac{(\bar{x}_1 -\bar{x}_2)-(\mu _1-\mu _2) }{\sqrt{\frac{\sigma _1^2}{n_{1}}+\frac{\sigma _2^2}{n_{2}}}}\leq \frac{1.9235 -2}{0.9814}\right )

= P( -4.0 ≤ z ≤ -0.08 )

= P( z ≤ -0.08 ) - P( z ≤ -4 .0)

= 0.4681 - 0

Power = 0.468

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