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Statistics Lesson 6 Part 1

This document discusses statistical concepts such as degrees of freedom, critical values, significance levels, type I and type II errors, and hypothesis testing. It provides examples of calculating these values for hypotheses about population means and determining critical values and rejection regions.

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24 views3 pages

Statistics Lesson 6 Part 1

This document discusses statistical concepts such as degrees of freedom, critical values, significance levels, type I and type II errors, and hypothesis testing. It provides examples of calculating these values for hypotheses about population means and determining critical values and rejection regions.

Uploaded by

hyotbn
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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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Download as PDF, TXT or read online on Scribd
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STATISTICS LESSON 6 PART 1

H.1.
a) The degree of freedom is 17, as we obtain it by discounting 1 to n (n-1) (18-1=17)
b) The two asked critical values are the following:
for 0.05 = 1.740
for 0.025 = 2.110
c) The value t = 1.83 is significant at the 5% level, but it isn’t significant at the 1% lvl.
d) To find the exact p-value

H.2.
H0= u=580 (expected value)
H1: u=600 (new value)
N: u=80 (standard deviation)
sample = 100 sellers

a) significance = alpha = type I error


The decision rule tells us to reject the NH 580 respect to 600 if the monetary value is
higher than 590.
P( x - u / (o/square root of n) > (590-580/(80/square rott of 100)) = P(z > 1.25) = 1-
P(z<1.25) = 10.56% = alpha

b) power = 1-beta
we do the same as before when we tried to calculate the significance level, but
instead of using 580, we use the Alternative H which is 600. And after doing the
computations we obtain the same result but as a negative -1.25, which in the normal
table will give us the same value 10.57% but now we have to subtract it to 1.
so 1-0.1057 = 0.8943 = 89.43%

c) (We already did the graph in class, and it's too difficult to do it on the computer.

d) Now to solve this one, we do exactly the same as in a and b , but we substitute 590
for 595 and we obtain that z= 0.625 and -0.625. we look up for it in the normal table
and we obtain a value between 0.2676 and 0.2643 for the significance level (alpha)
and a value between 0.7324 and 0.7357 for the power level (beta)

e) If we got a sample size of 144 instead of 100, then we have to substitute the square
root of 100 for the square root of 144 in the formula, which is 12. So the number
which will divide 590-580 and 590-600 will be lower and then the results that we will
obtain will be higher than before. Higher z that will imply higher significance level and
higher power level.

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H.3.

a) The probability to make type I(α) and type II(β) error


- Assumption α = P (Type I error)= 0.05 → Rejecting a true Ho
- α= P (reject Ho| Ho)= P(x ≤ 3.55 | x ~ N (4,1))
- P(z ≤ (3.5-4) / 1) = P (z ≤ -0.5) = 1- P (z ≤ -0.5)= 1- 0.69915

- Type II error (fail to reject a false Ho)


- β = P (not reject Ho| Ha) = P (x > 3.5 | x ~ N(2,1))
- P (z > (3.5-2)/ 1) = P (z > 1.5) = 1 - P (z > 1.5)= 1- 0.9332

b) The limit k between the acceptance and rejecting area:


α= 0.05 = P (x≤ k | x~ N (4,1)) = P (z ≤ (k-4) / 1)
- (k-4)/1 = -1.65
- k= -1.65 + 4 = 2.35
H.4.
Type 1 error:
Since we have the value for the critical value (1.82), we can standardize it in order to know
the area of the distribution that corresponds to the type 1 error.
z= (X-μ)/� → z= (1.82-1.78)/ 0,2 → z=0.2
Checking the normal distribution table, we conclude that the area concerning the type 1 error
is 1-0.5793 = 0.4207
There is a 42.07% probability of making a type 1 error.

Type 2 error:
To calculate β, we following these steps:

P(Z≤ (Xc-μ)/(�/√n)) →P(Z≤ (1.82-1.85)/(0.2/√100)) → P(Z≤-1.5)


Knowing the Z, we look at the table and find out that the area is 0.0668.
There is a probability of 6.68% of making a type 2 error.

H.5.

Null Hypothesis: Adding a new piece has no effect. Mean when adding the piece = 20

Alternate Hypothesis: Mean is not = 20 when the new piece is added.

- Assume that the Null hypothesis is true, with a normal distribution and a standard
deviation of 9. (sq root of 81)

In order to find the critical values upon which the rejection area will start, we have to
calculate the 5% significance level.
Since we are assuming a normal distribution, approximately 95% of the area is held within 2
standard deviations from the mean, so that will be our limited area.

Having a mean equal to 20, the upper limit will be 38, and the lower limit will be 2. Since we

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are working on an upper-tail test, we only need to focus on the upper limit..

38 is the lower mean value that allows us to reject the null hypothesis. In other words, if the
production mean becomes 38 or higher after adding the new piece, we can say that the
Alternate Hypothesis is true and thus, the production is indeed increased.

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