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Problem Set 1

This document contains 6 problems related to statistical hypothesis testing. Problem 1 involves a z-test to determine if a marketer should locate a retail store in an area based on average income. Problem 2 uses a z-test of proportions to determine if a firm should launch internationally. Problem 3 applies a t-test to average income data. Problem 4 performs a t-test comparing average ages between males and females. Problem 5 uses a z-test of proportions to analyze data from two airports. Problem 6 applies a t-test to compare average payback periods between financial institutions.

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Salma-Petra Zuraik
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22 views1 page

Problem Set 1

This document contains 6 problems related to statistical hypothesis testing. Problem 1 involves a z-test to determine if a marketer should locate a retail store in an area based on average income. Problem 2 uses a z-test of proportions to determine if a firm should launch internationally. Problem 3 applies a t-test to average income data. Problem 4 performs a t-test comparing average ages between males and females. Problem 5 uses a z-test of proportions to analyze data from two airports. Problem 6 applies a t-test to compare average payback periods between financial institutions.

Uploaded by

Salma-Petra Zuraik
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 PDF, TXT or read online on Scribd
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Problem

set 1
Monday, March 20, 2023 4:47 PM

P 27

1.
A) Null: HO: u=> 10,000
Alternative: H1: u<10,000

At 95% Z=1.96

12,000-1.96*9,000/√25= 8,472
12,000+1.96*9,000/√25= 15,528

Yes, the marketer should locate a retail store in the area.

B) No my answer will not be different if the market raises the minimum capita income requirement from $10,000 to $10,500, because $10,500 still
falls in the interval where we fail reject the null hypothesis

2. .

H0: II < .75


Ha: II ≥ .75
Z Test of proportions
1 tailed
IF Z cal>= z crit , reject H0
Z crit = 2.33
Z cal = - 13.75
Since -13.75< 2.33, We fail to reject H0
With 99 % confidence, we can conclude that at least 75% of people have not tried product. Firm XYZ should not launch
internationally

3.
A) Age is being measured
Test of average and means

Null: H0: u< $10,000


Alternative: Ha: u=> $10,000

One tailed test

T test for single mean, Test is under 30

N-1=24
Critical value = 1.711

Observed mean = 12000


Std = 9000
= 2000/1800 = 1.11

Since 1<1.711, we cannot reject the null hypothesis


With 95% confidence we conclude that mean income is not at least $10,000

4.
Age is measures
Null: mu 1 = 1 mu2.
Alternative: mu 1 ≠ mu 2
T test for 2 independent means
2 tailed test
Reject H0 if tcal ≥ t crit
Z .01 = 0.01 2.58
T cal = 6.67
Since 6.67> 2.58, we reject H0
We are 99% confident that there os a difference between average age of male and female consumers; the females are older ( mean
of women 30 vs 28 for men)

5. .
Test of proportions

Null: H0: Pie<0.290


Alternative: Ha: Pie ≥ 0.20

One tailed z test of proportions

One tailes Z.01= 2.33

130/500 = 0.26

(0.26 − 0.20) / 𝑠𝑞𝑟𝑡[0.20(1 − 0.20) / 500] = 3.06

3.06> 2.33

Reject the null hypothesis.

We are 99% confident that the shop at Dulles airport is attracting as much of the travelers as the other airport.

P28

6. H0: u1=u2
Ha: u1≠ u2

Two tailed test t test 2 independent means


Z test because n> 30

Reject H0 if I tcal I>= tcrit, otherwise we cannot reject H0

Two take Z.01=1.96

DF=n1+n2-2
100+64-2=162
t150,0.05/2 = 0.025 = 0.025 1.976

8.7-7.1/{(100-1*(2.23)^2+64-1*0.77^2/100-64-2}(1/100+1/64)= 6.58

Reject null hypothesis


With 95% confidence, we conclude that there is a difference between average payback period for saving and loans compares to
other financial institution

P 44

1. Importance is being measure


Interval data

H0: There is not difference between men and women


Ha: There are differences between men and women

Two tailes test


T test for 2 independent means

For two tailed test, the decision rule involves the absolute value of tcal

Two tailed test .0500 = 1.96

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