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Assignment 01

This document contains 4 problems related to hypothesis testing and confidence intervals. Problem 1 involves computing critical values and decision rules based on different sample sizes for a hypothesis test on a population mean. Problem 2 involves a hypothesis test and confidence interval on whether a company's incentive scheme increased average weekly earnings. Problem 3 tests a company's claim of 10% average annual yield and computes a confidence interval. Problem 4 conducts a hypothesis test on the percentage of a population that would disagree with a statement about future export markets.

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Farhan Israq Ahmed
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248 views1 page

Assignment 01

This document contains 4 problems related to hypothesis testing and confidence intervals. Problem 1 involves computing critical values and decision rules based on different sample sizes for a hypothesis test on a population mean. Problem 2 involves a hypothesis test and confidence interval on whether a company's incentive scheme increased average weekly earnings. Problem 3 tests a company's claim of 10% average annual yield and computes a confidence interval. Problem 4 conducts a hypothesis test on the percentage of a population that would disagree with a statement about future export markets.

Uploaded by

Farhan Israq Ahmed
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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School of Business North South University Course: BUS173; Assignment #01 Date of submission: October 20 by 12 pm.

Problem 1: A random sample obtained from a population with variance 2 =400, and sample mean is computed to be x 70 . Consider the null hypothesis H o : 80 and alternative hypothesis H 1 : 80 . Compute the critical value and state your decision rule for the following options regarding sample size: (i) n=25 (ii) n=16, (iii) n=44 a) Also calculate 95% confidence interval for for each of the cases and make your decision rule based on CI. a) Also obtain the p-value for each of the cases and makes you conclusion against null hypothesis. c) Does the sample size (n) make any changes in making decision on your hypothesis? Justify your answer. Problem 2: The weekly salary of all customer service workers of a company has had mean of $400 with standard deviation $48.6. In contract negotiation, the company claims that a new incentive scheme has increased the average weekly earnings for all workers. A union representation takes a random sample of 15 workers and finds that their weekly earning have an average of $381.35. (a) Test the company claims at 5% level of significance (b) Find 95% CI for the population mean of weekly salary and P-values. Based on CI and P-value, would you able to have same conclusion that obtained in (a)? Problem 3 : A company selling licenses for new e-commerce computer software advertises that firms using this software obtain, on average during the first year, a yield of 10% on their initial investments. A random sample of 10 on these franchises produce the following yields for the first year of operation: 6.1, 9.2, 11.5, 8.6, 12.1, 3.9, 8.4, 10.1, 9.4, 8.9 (a) Stating the necessary assumption, test the companys claim at 5% significance level (b) Find 95% CI for the population mean and conclude based on CI whether the null hypothesis stated in (a) is rejected or not. Is this conclusion similar to what you had in (a)?. Problem 4: In a random sample of 360 export managers in UK, 69 indicated some measure of disagreement with this statement: the most important export market for UK manufacturers in 10 years time will be the continent of Asia. Test at 5% level of significance the null hypothesis that at least 25% of all members of this population would disagree with this statement.

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