1. I use computer software to do the following. I generate ten random numbers from a N(500, 100) distribution. From these ten numbers I compute a 95% confidence interval for the mean using the formula
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where x' is the mean of the ten random numbers. I then repeat this process (generating a new set of 10 random numbers from a N(500, 100) distribution each time) until I have produced 1000 such intervals. Which of the following will be true?
A. Approximately 95% of the intervals will contain the value 500.
B. Approximately 95% of the intervals will contain the value 100.
C. Approximately 97.5% of the intervals will contain the true mean because the probability that a standard Normal random variable is less than 1.96 is 0.975. I have incorrectly used the formula for a 97.5% confidence interval.
2. Ginger root is used by many as a dietary supplement. A manufacturer of supplements produces capsules that are advertised to contain at least 500 mg. of ground ginger root. A consumer advocacy group doubts this claim and tests the hypotheses
H0 μ: = 500 Ha: μ < 500
They take a random sample of 100 ginger root capsules produced by the manufacturer and compute the test statistic
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where x' is the mean amount of ginger root in the 100 capsules sampled. Based on other information, the advocacy group knows the value of . If the test statistic z has value 2.39, we may conclude that
A. we reject H0 at level α = 0.05 but not at level = 0.01.
B. we reject H0 at level α = 0.01.
C. we do not reject H0 at level = 0.05.