Assignment:
Q: Ford Motor Company wishes to estimate the mean dollar amount of damage done to a new model Taurus as a result of a 10 mph crash into the rear bumper of a parked car. 36 Tauruses are test crashed into parked cars and the dollar amount of damage done to each is recorded. The results are:
x‾=$438
s= $86
A. Does the sample data provide evidence that the population mean amount of damage is less than $475 (using α=0.05)? Use the 5 step hypothesis testing procedure.
1. Formulate the null and alternative hypotheses.
2. Determine the criterion for rejection or non-rejection of the null hypothesis. That is, determine the Z critical value.
3. Calculate the Z test statistic.
4. Compare the Z test statistic to the Z critical value (rejection region) and make a judgment about the null and alternative hypotheses.
5. Interpret the statistical decision in terms of the problem.
6. Compute the observed p value in the hypothesis test, and interpret this value. What does this mean?
A random sample of 300 beer drinkers is selected and each member of the sample is asked to choose between two beers: Brand A and Brand
B. The results are that 165 prefer brand A and 135 prefer brand B.
a. Does the sample data provide evidence to conclude that more than 50% of the population of beer drinkers prefer brand A to brand B (using α=0.01)? Use the 5 step hypothesis testing procedure.
p = population proportion favoring brand A.
1. Formulate the null and alternative hypotheses:
2. Determine the criterion for rejection or non-rejection of the null hypothesis. That is, determine the Z critical value.
3. Calculate the Z test statistic.
4. Compare the Z test statistic with the Z critical value (rejection region) and make a judgment about the null and alternative hypotheses:
5. Interpret the statistical decision in terms of the problem.
6. Compute the observed p value in the hypothesis test, and interpret this value. What does this mean?