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Tutorial Set 2 Hypothesis Testing

The document presents a tutorial set for ECO 304: Intermediate Statistics, focusing on hypothesis tests across various scenarios including mortgage amounts, product preferences, agricultural yields, household incomes, student satisfaction, academic performance, gender proportions among professors, and dice fairness. Each problem requires statistical analysis using significance levels of 1% and 5% to draw conclusions about population means, proportions, and claims. The tutorial emphasizes constructing confidence intervals and testing hypotheses based on sample data.

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6 views1 page

Tutorial Set 2 Hypothesis Testing

The document presents a tutorial set for ECO 304: Intermediate Statistics, focusing on hypothesis tests across various scenarios including mortgage amounts, product preferences, agricultural yields, household incomes, student satisfaction, academic performance, gender proportions among professors, and dice fairness. Each problem requires statistical analysis using significance levels of 1% and 5% to draw conclusions about population means, proportions, and claims. The tutorial emphasizes constructing confidence intervals and testing hypotheses based on sample data.

Uploaded by

benjaminacquah.com
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

ECO 304: INTERMEDIATE STATISTICS

TUTORIAL SET 2: Hypothesis Tests


1. A simple random sample of 900 mortgages advanced in a recent period gives a mean of
GH¢48,075 and a standard deviation of GH¢750. Using a 5% level of significance, test the
hypothesis that the population mean amount was equal to GH¢48,030. Would your conclusion
differ if you used a 1% significance level?

2. Melcom sells 5,000 packets of cornflakes in each of its supermarkets each month on average.
A new brand is introduced on trial in 15 of its stores, and, after a month, the 15 stores have
sold an average of 5,200 packets each, with a sample standard deviation of 500 packets. Is
there sufficient evidence to conclude that the new brand is preferred?

3. A fertilizer company claims that its product will result in at least 35 sacks of potatoes per
hectare on average. Application of the fertilizer to a randomly chosen 36 sample hectares
results in an average yield of 33 sacks per hectare with a standard deviation of 5 sacks. Can the
manufacturers claim be rejected at the 1% level of significance?

4. A restaurant franchise has a policy of opening new restaurants only in those towns that have a
mean household income of at least GH¢20,000 per year. The research department of the
franchise is currently considering a town to open a new restaurant, and so it took a sample of
144 households. The mean income of this sample was GH¢19,400 with a sample standard
deviation of GH¢3600. Would you conclude that the franchise should not open a restaurant in
this town?

5. A recently conducted survey of 250 UCC students found that 175 are either happy or very
happy with their campus-based accommodation. (i) Construct a 95% confidence interval for
the proportion of all students at UCC who are happy or very happy with their campus
accommodation. (ii) How large a sample would you need to estimate the proportion who are
happy or very happy to within 2% with 95% confidence? (iii) The Dean of Students claim that
at least 75% of students are happy or very happy with their campus accommodation. Test the
validity of this claim at the 1% level of significance.

6. The percentage of 'firsts' given in an economics course at a certain university over a long period
was 10%. During one year, there were 40 'firsts' in a group of 300 students. Test the hypothesis
that students’ grades are improving
(a) at the 5% level and (b) at the 1% level.

7. Based on a sample of 100 university professors, only 16 were women. At the 5% significance
level, does this evidence refute the claim that the proportion of women professors is less than
10%? Would your decision be the same at a 1% level of significance?

8. A pair of dice is tossed 100 times and the sum is seven 23 times.

a. If the dice were fair, how many times would you expect the sum to be seven?
b. Test the hypothesis at 5% that the dice are fair using:
i. a two tailed test
ii. a one tailed test with an appropriately chosen null hypothesis.

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