1 / 6

Economics 105: Statistics

Economics 105: Statistics. Any questions ? GH 13 and GH 14 due Monday. Hypothesis Testing for .

hazina
Download Presentation

Economics 105: Statistics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economics 105: Statistics Any questions? GH 13 and GH 14 due Monday

  2. Hypothesis Testing for  Pharmaceutical manufacturer is concerned about impurity concentration in pills, not wanting it to be above 3%. From past production runs, it knows that the impurity concentration in the pills is normally distributed with a standard deviation () of .4%. A random sample of 64 pills was drawn and found to have a mean impurity level of 3.07%. Test the following hypothesis at the 5% level on the test statistic scale. Perform the test on the sample statistic scale. What is the p-value for this test? Power if true pop mean = 3.1%? p-value is the lowest significance level at which you can reject H0.

  3. What are the appropriate H0 & H1? • The Federal Trade Commission wants to prosecute General Mills for not filling its cereal boxes with the advertised weight. • Toyota won’t accept a shipment of tires from its supplier if the tires won’t fit their cars.

  4. What are the appropriate H0 & H1? • A professor would like to know if having a stats lab increases student grades relative to a class without a lab. • Ballbearings-R-Us won’t accept a shipment of ball bearings if more than 5% of the shipment is defective. • A firm that sends out advertising flyers wants to convince potential customers (i.e., firms) that it can increase their sales.

  5. Hypothesis Testing for  Pharmaceutical manufacturer is concerned about impurity concentration in pills, not wanting it to be above 3%. From past production runs, it knows that the impurity concentration in the pills is normally distributed with a standard deviation () of .4%. A random sample of 64 pills was drawn and found to have a mean impurity level of 3.07%. Test the following hypothesis at the 5% level on the test statistic scale. Perform the test on the sample statistic scale. What is the p-value for this test? Power if true pop mean = 3.1%? p-value is the lowest significance level at which you can reject H0.

  6. Hypothesis Testing for  Using t Pharmaceutical manufacturer is concerned about impurity concentration in pills, not wanting it to be different than 3%. A random sample of 16 pills was drawn and found to have a mean impurity level of 3.07% and a standard deviation (s) of .6%. Test the following hypothesis at the 1% level on the test statistic scale. Perform the test on the sample statistic scale. What is the p-value for this test? Calculate the 99% confidence interval.

More Related