Name: Samhith Babu Reddy Pendly

TECH 60001 Quantitative Methods in Technology

Homework Assignment #11
Chapter 10 Sections 10.1 & 10.2

Section 10.1 - The Language of Hypothesis Testing

1. What is a hypothesis?
Answer: It is a statement regarding a characteristic of one or more populations.
2. What is hypothesis testing?
Answer: It is a testing procedure based on a sample evidence and probability.
This procedure used for testing regarding characteristics of one or more
populations.
3. What is the null hypothesis (H0)?
Answer: The null hypothesis is a statement of no change, no effect, or no
difference and is assumed true until evidence indicates otherwise.
4. What is the alternative hypothesis (H1)?
Answer: Alternative hypothesis is a statement we are trying to evidence
indicates otherwise
5. What are the three ways to set up the null hypothesis and the alternative hypothesis, and what type
of test is done for each one?
Answer: 1. Equal hypothesis versus not equal hypothesis (two-tailed test)
H0: parameter = some value
H1: parameter some value
2. Equal versus less than (left-tailed test)
H0: parameter = some value
H1: parameter < some value
3. equal versus greater than (right-tailed test)
H0: parameter = some value
H1: parameter >some value

6. What are the four outcomes associated with hypothesis testing?

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Answer: The four outcomes associated with hypothesis testing are

When the alternative hypothesis is true then the null hypothesis is rejected
and the decisions is correct
The null hypothesis should not be rejected until the null hypothesis is true
and this decision might be correct
Reject the null hypothesis when the null hypothesis is considered true and
this can be wrong and this type of error is called as the type 1 error.
The null hypothesis should not be rejected when the alternative hypothesis is
true as this type could go wrong and is called as type 2 error.

7. What is a Type I error?

Answer: Reject the null hypothesis when the null hypothesis is true. This decision would be
incorrect. This type of error is called a Type I error.
8. What is a Type II error?
Answer: Do not reject the null hypothesis when the alternative hypothesis is true. This decision
would be incorrect. This type of error is called a Type II error
9. In terms of Type I and Type II errors, what is (alpha)?
Answer: = P (Type I Error)
= P (rejecting H0 when H0 is true)

10. In terms of Type I and Type II errors, what is (beta)?

Answer: = P (Type II Error)
= P (not rejecting H0 when H1 is true)

11. In hypothesis testing, what does the level of significance describe/indicate?

Answer: It indicates the probability of making errors when in testing hypotheses.
10. What determines the value of the level of significance?
Answer: The distance from the null hypothesis determines the level of significance.
11. What happens to Type II errors as the level of significance is decreased? (How are Type I and Type
II errors related with respect to the level of significance?

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Answer: When the level of significance is decreased in type2 then the probability of type 1 error is
increased.
12. The purpose of hypothesis testing is to either reject the null hypothesis or to not reject the null
hypothesis. Is it appropriate to say that a null hypothesis is accepted? Why?
Answer:Since our sample normally just contains a subset of the information in the population, we
can't be completely sure concerning whether the invalid speculation is valid or not. We can
accumulate data to figure out if it is likely or not. We subsequently talk about rejecting or not
dismissing the invalid theory on the premise of some test, however not of accepting the invalid
speculation or the option theory.
13. If the consequences of making a Type I error are severe, would you choose the level of
significance,, to be set at 0.01, 0.05, 0.10? Why?
Answer: It is difficult to reject H knot, we can choose alpha as 0.01.
14. If a hypothesis is tested at the = 0.05 level of significance, what is the probability of making a
Type I error?
Answer: The probability of making a type 1 error is 0.05 when the level of significance is 0.05.
15. Determine whether the hypothesis test is left-handed, right-handed, or two-tailed for the null
hypothesis and alternative hypothesis listed below.

H0 : p = 0.2
H1 : p < 0.2
Answer: It is a left tailed test.
16. Determine whether the hypothesis test is left-handed, right-handed, or two-tailed for the null
hypothesis and alternative hypothesis listed below.

H0 : = 7.8
H1 :

7.8

Answer: It is a two-tailed test.

17. According to Giving and Volunteering in the United States, 2001 Edition, the mean charitable
contribution per household in the United States in 2000 was $1,623. A researcher believes that the
level of giving has changed since then.

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a) Determine the null and alternative hypotheses

Answer: H0: p = $1623
H1 $1623

b) Explain what it would mean to make a Type I error.

Answer: A Type I error is made if the researcher concludes that H0 $1623
as true proportion of americans households who participates in some form of charity work is
currently 1623.
c) Explain what it would mean to make a Type II error.
Answer: A Type II error is made if the sample evidence leads the researcher to believe that
the current amount of Americans households who participated in some form of charity work
is still $1623 when, in fact, this amount differs from $1623.
d) Assume that the null hypothesis is not rejected. What are your conclusions based on that
result?
Answer: There is no sufficient evidence as the null hypothesis is not rejected to say that the
proportion of mean charitable contribution per household is not equal to 1623.

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18. In 2007, the standard deviation SAT score on the Reasoning Test for all students taking the exam
was 113. A teacher believes that, due to changes to high school curricula, the standard deviation of
SAT math scores has decreased.

a) Determine the null and alternative hypotheses

Answer: H0: = 113
H1: < 113

b) Explain what it would mean to make a Type I error.

Answer: Type I error occurs if the sample evidence leads the teacher to conclude that <
113 when, in fact, the actual school curricula is still = 113.
c) Explain what it would mean to make a Type II error.
Answer: Type II error occurs if the teacher fails to reject the hypothesis that the actual high
school curricula then it is = 113 when, in fact, it is lesser than < 113.
d) Assume that the null hypothesis is rejected. What are your conclusions based on that
result?
Answer: The statement in the alternative hypothesis is that the proportion of changes to high
school curricula, the standard deviation of SAT math scores is less than 113.
Because the null hypothesis is rejected.
19. The mean score on the SAT Math Reasoning exam is 518. A test preparation company states that
the mean score of students who take its course is higher than 518.

a) Determine the null and alternative hypotheses.

Answer: H0: = 113
H1: > 113
b) If sample data indicate that the null hypothesis should not be rejected, state the conclusion
of the company.
Answer: We cannot tell about the mean score.

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c) Suppose, in fact, that the mean score of students taking the preparatory course is 522. Has
a Type I or Type II error been made? If we tested this hypothesis at the = 0.01 level, what
is the probability of committing a Type 1 error?
Answer: The probability of committing a type I error is 10%

d) If we wanted to decrease the probability of making a Type II error, would we need to

increase or decrease the level of significance?
Answer: If we wanted to decrease the probability of making a type II error, we need to
increase the level of significance.

Section 10.2 - Hypothesis Tests for a Population Proportion

20. State the three sampling requirements/conditions needed to test a hypothesis for a population
proportion.
Answer:
a) The sample is simple random sample
b) np (1-p)>= 10
c) The sampled values are independent to each other.

21. What are the two approaches presented in Section 10.2 for testing hypothesis for a population
proportion?
Answer: a) Testing the hypotheses about a population proportion.
b) Testing hypotheses about a population proportion using the binomial
probability distribution.
22. In hypothesis testing what does it mean when a result is statistically significant?
Answer: When observed results are unlikely under the assumption that the null
hypothesis is true, we say the result is statistically significant. When results are
found to be statistically significant, we reject the null hypothesis.
23. Describe the general methodology used in the "classical approach" used in hypothesis testing.
Answer: We reject the null hypothesis because sample proportion is too many
standard deviations from the proportion stated in the null hypothesis.

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24. Describe the general methodology used in the "P-value approach" used in hypothesis testing.
Answer: The general methodology used in the P-value approach is that when the probability of
getting a sample proportions as extreme than obtained is fewer in the assumptions the statement in
the null hypothesis is true then the null hypothesis is rejected.

25. Given the following information:

H0: p = 0.6 versus H1: p < 0.6
n = 250
x = 124
= 0.01

a) Test the hypothesis using the classical approach. Show both the critical value(s) and the test
statistic value.
Answer: P^=X/n = 124/250 = 0.496
Zo = (^p-p0)/p0 (1-p0)/n
= (0.496-0.6)/0.6*(1-0.6)/250
= -0.104/0.0309
=-3.365
Zo form the standard table it 0.0004
-Z < -2.33
Zo > -Z
The condition is not satisfied (Zo < -Z) Fail to reject null hypothesis.

b) Test the hypothesis using the P-value approach. Show both the critical value(s) and the test
statistic value.
Answer: P^=X/n = 124/250 = 0.49
Zo = (^p-p0)/p0 (1-p0)/n
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= (0.49-0.6)/0.6*(1-0.6)/250
=-3.36
Zo is 0.0004 form standard table.
p value condition is p value <alpha
P value is the right tail area which is 0.0004 < 0.01
Condition satisfied so, reject null hypothesis.

26. Given the following information:

H0: p = 0.4 versus H1: p 0.4
n = 1000
x = 420
= 0.01

a) Test the hypothesis using the classical approach. Show both the critical values and the test
statistic value.
Answer: P^=X/n = 420/1000 = 0.42
Zo = (^p-p0)/p0 (1-p0)/n
= (0.42-0.4)/0.4*(1-0.4)/1000
= 0.02/0.015
=1.298
Zo form the standard table it is 0.9015
-Z/2= -2.576
Zo > -Z/2
Zo< Z/2
Condition does not satisfy so, fail to reject null hypothesis.

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b) Test the hypothesis using the P-value approach. Show both the critical values and the test
statistic value.
Answer: P^=X/n = 420/1000 = 0.42
Zo = (^p-p0)/p0 (1-p0)/n
= (0.42-0.4)/0.4*(1-0.4)/1000
= 0.02/0.015
=1.29
Zo is 0.9015
The p value condition is p value <alpha
P value is the two side tail area which is
0.9015*2 =1.803
1.803> 0.01
Condition does not satisfied
And failed to reject null hypothesis

27. Nexium is a drug that can be used to reduce the acid produced by the body and heal damage to the
esophagus due to acid reflux. The manufacturer of Nexium claims that more than 94% of patients
taking Nexium are healed within 8 weeks. In clinical trials, 213 of 224 patients suffering from acid
reflux disease were healed after 8 weeks. Test the manufacturer's claim at the = 0.01 level of
significance. Show both the critical value(s) and the test statistic value.
Answer: X=213, n=224, Po= 0.94, alpha = 0.01
P > 0.94
H0: P = 0.94
H1: P > 0.94
Critical value Z= 2.33
Zo = (^p-p0)/p0 (1-p0)/n
= (0.951-0.94)/ (0.94*0.06)/224
= 0.69
Form the Z standard tables 0.69 = 0.2549
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Z = 2.33
Zo< Z
The condition Zo> Z is not satisfied
Fail to reject null hypothesis.
There is not sufficient sample evidence to support the claim that more than 94% of patients are
healed within 8 weeks.

28. In August 2003, 56% of employed adults in the United States reported that basic mathematical
skills were critical or very important to their job. The supervisor of the job placement office at a 4year college thinks this percentage has increased due to increased use of technology in the
workplace. He takes a random sample of 480 employed adults and finds that 297 of them feel that
basic mathematical skills are critical or very important to their job. Is there sufficient evidence to
conclude that the percentage of employed adults who feel basic mathematical skills are critical or
very important to their job has increased at the = 0.05 level of significance? Show both the
critical value(s) and the test statistic value.
Answer: X=297, n=480
P= 0.56
P^=0.618
Ho: p=0.56
H1: p>0.56
Z right tail, (alpha=0.05) critical value =1.644
Zo = (^p-p0)/p0 (1-p0)/n
Zo= 2.593 from the standard tables it is 0.995
Zo<Z so the condition is not satisfied the null hypothesis fail to reject.
Now p value the condition is p value < alpha
P value the right is 0.995 > 0.05
Here null hypothesis fails to reject.

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