WEEK 11 Tutorial
1. True/False questions. Justify your answer.
a. If the p-value is greater than the chosen significance level, we reject the null hypothesis.
b. When comparing two population means, increasing sample size leads to a larger z value
(test statistic).
c. The F distribution is used for testing differences between two population proportions.
d. If you fail to reject H0 at 5% significance level, then you cannot reject at 10%
significance level either.
e. A researcher wants to test H0: 𝑥 1 = 𝑥 2 versus the two sided alternative Ha: 𝑥 1 ≠ 𝑥 2.
f. A study recorded the IQ scores of 100 level 4 students. The scores of the 56 males in the
study were compared with the scores of all 100 level 4 students using the two sample z-
test.
2. Complete the following table.
Reality Your decision
Do not reject H0 Reject H0
Correct decision ______________
H0 is true
Probability ____ Probability ____
Type II error ____________
H1 is true Probability ___ Probability ___
the power of the test
3. An experiment is conducted to determine whether intensive tutoring (covering a great deal of
material in a fixed amount of time) is more effective than standard tutoring (covering less material
in the same amount of time) for a particular course. Two randomly chosen groups of students were
tutored separately and their examination mark on the course was recorded. The data are
summarized in the table below:
Use an appropriate hypothesis test to determine whether there is a difference between the mean
examination marks between the two tutoring groups. Use a = 0.05.
a. State the hypotheses
b. Compute the test statistic.
c. Provide your rejection region and critical value.
d. What are your decision and conclusions?
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4. A pharmaceutical company is conducting an experiment to test whether a new type of pain
reliever is effective. The pain reliever was given to 30 patients and it reduced the pain for 20 of
them. A second experiment followed where a placebo pill was given to another group of 40
patients. A placebo pill contains no medication and is prescribed so that the patient will expect to
get well. In some situations, this expectation is enough for the patient to recover. This effect, also
known as the placebo effect, occurred to some extent in the second experiment where the pain
was reduced for 21 of the patients.
You are asked to consider these findings in your hypothesis to see whether the pain reliever is
more effective than a placebo pill.
a. Conduct your hypothesis test using a significance level of 1%.
b. Calculate the p-value of your test and comment on the significance of your test at 1%, 5%
and 10% levels.
5. A university research team was studying the relationship between idea generation by groups
with and without a moderator. For a random sample of four sessions with a moderator, the mean
number of ideas generated per session was 78.0, and the standard deviation was 24.4. For a random
sample of five sessions without a moderator, the mean number of ideas generated was 63.5, and
the standard deviation was 20.2. Test the assumption that the two population variances were equal
against the alternative that the population variances were different for two groups. Use alpha =
0.10.
6. Independent random samples of business managers and college economics faculty were asked
to respond on a scale from 1 (strongly disagree) to 7 (strongly agree) to this statement: Grades in
Statistics are good indicators of students’ analytical skills. For a sample of 70 business managers,
the mean response was 4.4 and the sample standard deviation was 1.3. For a sample of 106
economics faculty the mean response was 5.3 and the sample standard deviation was 1.4.
a. Test, at the 5% level, the null hypothesis that the population means are equal against the
alternative that the population mean response is lower for business managers than for economics
faculty.
b. Would your decision be different if the test was conducted for two-tailed? Explain through
p-value approach.
HOMEWORK
7. In the past decade, intensive antismoking campaigns have been sponsored by both federal
and private agencies. Suppose the American Cancer Society randomly sampled 1,500 adults in
2010 and then sampled 1,750 adults in 2020 to determine whether there was evidence that the
percentage of smokers had decreased. Conduct the hypothesis testing at alpha of 10%.
Results of Smoking Survey
2010 2020
n1 = 1500 n2 = 1750
x1 = 555 x2 = 578
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8. In recent years, the US and Japan have engaged in intense negotiations regarding
restrictions on trade between the two countries. One of the claims made by the US officials is
that many Japanese manufacturers price their goods higher in Japan than in the US, in effect
subsidizing low prices in the US by extremely high prices in Japan.
An economist decided to test the hypothesis that average automobile retail prices are different in
these two countries. She obtained independent random sample of 50 retail sales in the US and 50
retail sales in Japan. According to her findings, sample mean was $26,596 and sample standard
deviation was $1,981 for the US. They were $27,236 and $1,974 respectively in Japan. Using a
significance level of 1%, can she conclude that auto retail prices are different in these two
countries?
a. State your hypotheses
b. Compute the test statistic value.
c. Identify the rejection region and critical value.
d. Provide your decision and interpretations.
e. Find the p-value of the test.
