Question

4.) Each of the following statements is incorrect. Correct the statement and explain (in at most 2 sentences). (a) A hypothesis test gives a P-value of P = 0.25. Therefore, there is a 25% chance that Ho, the null hypothesis, is true. (b) A study compares the population mean annual incomes for women (ui) and for men (uz) having jobs in Fortune 500 companies. Suppose that a 95% confidence interval for Mi - M2 is (-3000, 1000). Then we can conclude that average salaries for women and men are the same.

Answer 1

4)

a)

P-value is the probability of rejecting the null hypothesis H0 when it is true.

So, a p-value os 0.25 indicates that the probability of reject H0 when it is true is 0.25.

b)

The 95% CI is (-3000, 1000).

Since this interval contains the value 0, so at 5% level of significance, we cannot conclude that the average salaries for men and women are different.

This does not neccessarily mean that their salaries are the same.