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Hypothesis Testing Practice Examples

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0% found this document useful (0 votes)
15 views2 pages

Hypothesis Testing Practice Examples

Uploaded by

cricjitesh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Practice examples

Hypothesis testing

1) Data released by the National Centre for Health Statistics showed that the mean age at which
women had their first child was 25.0 in 2006 (The Wall Street Journal, February 4, 2009). The
reporter, Sue Shellenbarger, noted that this was the first decrease in the average age at which
women had their first child in several years. A recent sample of 42 women provided the data in the
website file named FirstBirth concerning the age at which these women had their first child. Do the
data indicate a change from 2006 in the mean age at which women had their first child?
2) A recent issue of the AARP Bulletin reported that the average weekly pay for a woman with a high
school degree is $520 (AARP Bulletin, January–February 2010). Suppose you would like to
determine if the average weekly pay for all working women is significantly greater than that for
women with a high school degree. Data providing the weekly pay for a sample of 50 working
women is available in the file named WeeklyPay. These data are consistent with the findings
reported in the AARP article.
a) State the hypotheses that should be used to test whether the mean weekly pay for all women
is significantly greater than the mean weekly pay for women with a high school degree.
b) Use the data in the file named WeeklyPay to compute the sample mean, the test statistic, and
the p-value.
3) Suppose that you are responsible for making arrangements for a business convention. Because of
budget cuts due to the recent recession, you have been charged with choosing a city for the
convention that has the least expensive hotel rooms. You have narrowed your choices to Atlanta
and Houston. The file named Hotel contains samples of prices for rooms in Atlanta and Houston
that are consistent with the results reported by Smith Travel Research (SmartMoney, March 2009).
Because considerable historical data on the prices of rooms in both cities are available, the
population standard deviations for the prices can be assumed to be $20 in Atlanta and $25 in
Houston. Based on the sample data, can you conclude that the mean price of a hotel room in
Atlanta is lower than one in Houston?
4) The College Board provided comparisons of Scholastic Aptitude Test (SAT) scores based on the
highest level of education attained by the test taker’s parents. A research hypothesis was that
students whose parents had attained a higher level of education would on average score higher on
the SAT. The overall mean SAT math score was 514 (College Board website, January 8, 2012). SAT
math scores for independent samples of students follow. The first sample shows the SAT math
test scores for students whose parents are college graduates with a bachelor’s degree. The second
sample shows the SAT math test scores for students whose parents are high school graduates but
do not have a college degree.
5) The price per share of stock for a sample of 25 companies was recorded at the beginning of2012
and then again at the end of the 1st quarter of 2012 (The Wall Street Journal,April 2, 2012). How
stocks perform during the 1st quarter is an indicator of what is ahead for the stock market and the
economy. Use the sample data in the file entitled StockPrices to answer the following.
a) Let 𝑑𝑖 denote the change in price per share for company 𝑖 where 𝑑𝑖 = 1st quarter of 2012
price per share minus the beginning of 2012 price per share. Use the sample mean of these
values to estimate the dollar amount a share of stock has changed during the 1st quarter.
b) What is the 95% confidence interval estimate of the population mean change in the price per
share of stock during the first quarter? Interpret this result.
6) Many smartphones, especially those of the LTE-enabled persuasion, have earned a bad rap for
exceptionally poor battery life. Battery life between charges for the Motorola Droid Razr Max
averages 20 hours when the primary use is talk time and 7 hours when the primary use is Internet
applications (The Wall Street Journal, March 7, 2012). Since the mean hours for talk time usage is
greater than the mean hours for Internet usage, the question was raised as to whether the variance
in hours of usage is also greater when the primary use is talk time. File: BatteryTime
7) A Deloitte employment survey asked a sample of human resource executives how their company
planned to change its workforce over the next 12 months (INC. Magazine, February 2012). A
categorical response variable showed three options: The company plans to hire and add to the
number of employees, the company plans no change in the number of employees, or the company
plans to lay off and reduce the number of employees. Another categorical variable indicated if the
company was private or public. Sample data for 180 companies are summarized in
WorkforcePlan.
8) An ambulance service responds to emergency calls for two counties in Virginia. One county is an
urban county and the other is a rural county. A sample of 471 ambulance calls over the past two
years showed the county and the day of the week for each emergency call. Data: Ambulance
9) The U.S. Census Bureau computes quarterly vacancy and homeownership rates by state and
metropolitan statistical area. Each metropolitan statistical area (MSA) has at least one urbanized
area of 50,000 or more inhabitants. The following data are the rental vacancy rates (%) for MSAs in
four geographic regions of the United States for the first quarter of 2008 (U.S. Census Bureau
website, January 2009). Data: RentalVacancy

Common questions

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To verify if the variance in hours of usage is greater for talk time than internet usage, set up a hypothesis test for variances: H0: σ^2_talk = σ^2_internet and Ha: σ^2_talk > σ^2_internet. Using data from the file BatteryTime, calculate the test statistic for variance and compare it to the critical value for significance at a chosen level. Reject the null hypothesis if the test statistic exceeds the critical value, indicating higher variance for talk time .

To test if the mean age at which women have their first child has changed since 2006, you would perform a hypothesis test. Set up the null hypothesis, H0: μ = 25.0 years, and the alternative hypothesis, Ha: μ ≠ 25.0 years, where μ is the current mean age of first childbirth. Using the sample data from the file FirstBirth, calculate the sample mean, test statistic, and p-value. If the p-value is less than the chosen significance level (e.g., 0.05), you reject the null hypothesis, indicating a significant change in age .

The correlation between SAT math scores and parental education levels may be due to factors like access to resources, cultural emphasis on education, and socio-economic status. Students with college-educated parents may have greater support and expectations to excel. This correlation suggests educational policies could focus on providing more resources and support to students from lower educational backgrounds to bridge performance gaps and ensure equitable learning opportunities .

The estimated mean change in stock price during the first quarter of 2012 is determined by calculating the mean of the differences, di = Q1 price - beginning price, from the sample data in the file StockPrices. To interpret with 95% confidence, compute the confidence interval: mean ± (critical value * standard error). This interval estimates the range within which the true mean change in stock price per share likely falls .

To determine if the distribution of emergency calls differs by county type, conduct a chi-square test of independence using the data from file Ambulance. This test will evaluate if the frequency distribution of calls on different days is independent of being in an urban or rural county. A significant test result indicates differing patterns, informing emergency planning and resource allocation between county types .

The changes in stock prices during the first quarter of 2012, derived from the file StockPrices, serve as indicators of investor sentiment and economic trends. A general increase could suggest economic optimism, likely leading to increased investments and economic growth. Conversely, declines might reflect caution or anticipation of downturns, influencing monetary policy adjustments and investment strategies .

The hypotheses to determine if the average weekly pay for all working women is greater than for women with a high school degree are: H0: μ1 = $520 and Ha: μ1 > $520, where μ1 is the mean weekly pay for all women. Compute the sample mean from the file WeeklyPay to perform the hypothesis test, calculate the test statistic, and compare with the critical value or p-value for significance .

By analyzing the workforce plans from the file WorkforcePlan, insights can be derived by comparing the categorical responses across company types. Use chi-square tests for independence to investigate if there is a significant association between company type and workforce strategy (hire, no change, layoff). Insights reveal if either public or private companies have different trends in employment strategies due to economic conditions .

The vacancy rate patterns across U.S. regions in 2008, obtained from RentalVacancy data, show how vacancy rates vary by geographic areas. Higher vacancy rates could indicate housing surplus, influencing policies to encourage occupancy and development incentives. Lower rates suggest demand exceeding supply, prompting initiatives to increase housing availability and affordability, tailored to regional needs .

To evaluate if the average hotel room price in Atlanta is lower than in Houston, perform a two-sample hypothesis test for means with known population standard deviations. Use the hypothesis H0: μA ≥ μH and Ha: μA < μH, where μA and μH are the mean prices for Atlanta and Houston, respectively. Using the sample data from the file Hotel and known standard deviations, compute the test statistic and corresponding p-value. If the p-value is smaller than the significance level, conclude that Atlanta has cheaper hotel rooms statistically .

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