Question #1 In1990, 5.8% ofjob applicants whowere testedfor drugsfailed thetest. A randomsample of1440currentjobapplicantsresults in61failures (basedloosely on datafromthe AmericanManagementAssociation).   Attheα=0.01significancelevel, testthebelowcl

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Question #1

In1990, 5.8% ofjob applicants whowere testedfor drugsfailed thetest.

A randomsample of1440currentjobapplicantsresults in61failures (basedloosely on datafromthe AmericanManagementAssociation).

 

Attheα=0.01significancelevel, testthebelowclaim(i.e.,thatthefailure rateis now lower)

 

HO:p = 0.058

HA:p < 0.058

 

a) Is thisanuppertail,lower tail,or two-tailtest?(5points)

b) Are we testing meansor proportions?(5points)

c)Statethe rule ofrejection(in termsofp-valueandlevel ofsignificance) (5points)

d) Findthep-value(5points)

e) Shouldyourejector notreject HO?(5points)

f) Does theresult suggestthatfewer job applicantsnowuse drugs?(5 points)


Researchers studyinginfantheadcircumferences (incentimeters)wish totestifthe meanheadcircumference differsfromthehistorical mean of 34.5cm.Theresearchers obtainasample of17infantswithameanheadcircumference of34.16cmanda standard deviationof0.58cm.

 

Attheα=0.05significancelevel, testtheclaim

 

HO:µ=34.5

HA:µ≠ 34.5

 

a) Is thisanuppertail,lower tail,or two-tailtest?(5points)

b) Are we testing meansor proportions?(5points)

c)Statetherule ofrejection(in termsof p-valueandlevel ofsignificance) (5points)

d) Findthep-value(5points)

e) Shouldyourejector notreject HO?(5points)

f) Does theresult suggestthatthemeanheadcircumferencediffersfrom34.5cm? (5 points)

 

 

 

Question #3

Performthefollowing hypothesistest onthepaired data below:

 

HO:µd=0(Pleaserecallthat µdis read~and alsoknown as ~Mu-sub-d) HA:µd≠0Test atα=0.05

 

Before

30

72

97

59

61

57

57

89

92

After

57

68

98

62

67

71

68

96

98

 

 

 

a) Isthisanuppertail,lower tail,or two-tailtest?(5points)

b) Are we testing meansor proportions? (5points)

c)Statetherule ofrejection(in termsofp-valueandlevel ofsignificance) (5points)

d) Findthep-value(5points)

e) Shouldyourejector notreject HO?(5points)

f) DothedataprovidesufficientevidencetosuggesttheAfter scores are indeed higher? Whyor whynot?(5points)

 

Note:Becausetheabove isatwo-tailtest,rejection ofHo aloneisnot a  sufficient reason.Hint: What elsedidyou observe among the sampleresults?


Thebelowsampledatarepresentsthecost of9name-brand drugsandtheir corresponding genericequivalent.(UseNameBrandasSample1)

 

Name

Brand

120

150

135

140

160

175

140

120

165

Generic

Brand

99

135

130

119

139

150

129

109

160

 

 

 

a) Computeatwo-sided 90%confidenceInterval estimatefor µd.(5points)

 

 

b) Basedonyour interval, canyousafelyconcludethatgenerics areless expensive thannamebrand?Whyorwhynot?(5 points)

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