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Exercises Hyp Test

The document discusses hypothesis testing for a proportion. It provides an example of a cereal company claiming its cereal packages weigh at least 16oz. It asks to formulate the null and alternative hypotheses and determine if it is a one-sided or two-sided test. It then provides sample data and asks to build a 90% confidence interval for the population mean and test the cereal company's claim. It also provides information on calculating standard error and z-scores for hypothesis testing a proportion. It gives an example of estimating the proportion of employees favoring a bonus plan and testing if it is greater than 80%.
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0% found this document useful (0 votes)
35 views2 pages

Exercises Hyp Test

The document discusses hypothesis testing for a proportion. It provides an example of a cereal company claiming its cereal packages weigh at least 16oz. It asks to formulate the null and alternative hypotheses and determine if it is a one-sided or two-sided test. It then provides sample data and asks to build a 90% confidence interval for the population mean and test the cereal company's claim. It also provides information on calculating standard error and z-scores for hypothesis testing a proportion. It gives an example of estimating the proportion of employees favoring a bonus plan and testing if it is greater than 80%.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Exercise 1

Malt-O-Meal, a producer of cereal, claims that, on average, its cereal packages weigh at least
16 oz.

a) Formulate the null and the alternative hypothesis.


b) Will you be dealing with one-sided or two-sided hypothesis?

Suppose we took a random draw of 49 boxes. The sample mean weight is 16.4, the sample
standard deviation is 4.3.

c) Build a 90% confidence interval for the unknown population mean (average weight of a
package in the population)
d) Test the claim of a cereal producer. Suppose we want the probability of type I error to
be 10%.

Proportions:

• Given that the variance of the binomial distribution is given by:

• P(1−P), we can find the standard error:

• se=
√ P ( 1−P )
n

• The estimate of the standard error:


√ ^ ( 1− P
P
n
^)
, where ^
P is sample proportion.


^ ( 1− P
P ^)
• The estimate of the standard error: , where ^
P is sample proportion.
n
^
P−P
^
P−P
• z=
se
=¿
√ ^
P ( 1− ^
n
P)

• This value of z is then compared with the critical level.

Exercise 2 (proportions)

Management wants an estimate of the proportion of the corporation’s employees who favor a
modified bonus plan. From a random sample of 344 employees, it was found that 261 were in
favor of this particular plan. The management would be willing to make the modified plan official
if more than 80% of workers accept it. Should the management make the plan official? CL =80%

Solution:

• H0: 80% or less workers accept the new plan.

H1 (alternative hypothesis): more than 80% of workers accept the new plan.

√ √
^ ^)
P ( 1− P 0.76 (1−0.76 )
• se= =¿ =0.023
n 344
^
P−P 0.76−0.70
• z= = =2.61
se 0.023
• This value of z is then compared with the critical level.

• Using NORM.S.INV we find z-crit=1.28

Z exceeds the critical level, hence reject the null hypothesis. This means the management can be
confident that more than 80% of workers accept the plan. The management should make the
plan official.

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