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Hypothesis Testing: Group 1

The null hypothesis is that the mean commuting distance is 15 km. The alternative hypothesis is that the mean commuting distance exceeds 15 km. A sample of 49 commuting distances was taken. The null hypothesis would be rejected if the sample mean was more than 2.5 standard deviations above the population mean of 15 km. The sample mean was 16.25 km. There is enough evidence at the 5% significance level to reject the null hypothesis and conclude that the mean commuting distance exceeds 15 km.

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33 views11 pages

Hypothesis Testing: Group 1

The null hypothesis is that the mean commuting distance is 15 km. The alternative hypothesis is that the mean commuting distance exceeds 15 km. A sample of 49 commuting distances was taken. The null hypothesis would be rejected if the sample mean was more than 2.5 standard deviations above the population mean of 15 km. The sample mean was 16.25 km. There is enough evidence at the 5% significance level to reject the null hypothesis and conclude that the mean commuting distance exceeds 15 km.

Uploaded by

Prince Jairo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Hypothesis Testing

GROUP 1
A study in 2002 established the mean commuting
distance for workers in a certain city to be 15 km.
Because of the westward spread of the city, it is
hypothesized that the current mean commuting
distance exceeds 15 km. A traffic engineer wishes to
test the hypothesis that the mean commuting distance
for workers in this city is greater than 15 km.
a.  Give the null and alternative hypothesis for this scenario.

b. The decision is made to reject the null hypothesis if the mean of a sample of
49 randomly selected commuting distances is more than 2.5 standard errors above
the mean established in 1992. The standard deviation of the sample is found to
equal 3.5 km. Give the rejection and non-rejection regions.

c. Type I error is made if it is concluded that the current mean commuting


distance exceeds 15 km when in fact the current mean is equal to 15 km. A Type
II error is made if it is concluded that the current mean commuting distance is
15 km when in fact the mean exceeds 15 km.

d. Find the level of significance for the test procedures

e. The hypothesis system Ho: and Ha: was tested by using a sample of size 49.
The null hypothesis was to be rejected if the sample mean exceeded 16.25.
Suppose the true value of p is 16.5. What is the probability that this test
procedure will not result in the rejection of the null hypothesis?
Step 1: State the Null & Alternative Hypothesis

Null Hypothesis (H₀): µ = 15 Km.

Alternative Hypothesis (Hₐ): µ > 15 Km.


Step 2: Calculate Test Statistics
µ = 15 Km.
σ = 3.5 Km.
n = 49
x̅ = 16.25

Z = _ x̅ - µ_
σ / √n
Z = _ 16.25 - 15_
3.5 / √49
Z = 2.5
Step 3: Consider Decision Rule
Z = _ x̅ - µ_ ~ N(0,1)
σ / √n
Z-Crit = 1.645
Reject H₀ if Z > 1.645
Step 3a: Calculate the P-value
P-value is the porbability of getting a sample as extreme as ours, given the Null
Hypothesis is TRUE.

P-value = 1-NORM.S.Dist(2.5,TRUE)
P-Value = 0.0062
Step 4: State Rejection Decision
Reject H₀ at 5%
Level of Significance
as Z > 1.645

Or

Reject H₀ at 5%
Level of Significance
as P < 0.05
Step 5: Conclusion
 There is enough evidence at the 5% level of
significance to suggest that the mean commuting
distance for workers in a certain city is greater
than 15Km.
Suppose the true value of P is 16.5. What is the probability that the rest
procedure will not result in the rejection of the Null Hypothesis?

Z = _ 16.5 - 15_
3.5 / √49
Z=3
P-value = 1-NORM.S.Dist(3,TRUE)
P-value = 0.00135
P-value = 0.135%
Type I & Type II Errors

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