Investigate the significance level $α = 0.01$.












2












$begingroup$



If you throw a coin in a vending machine, the coin is being weighed by the machine to determine its value.

For statistical purposes, you decide to throw $4$ fifty-cent coins in this machine and let $overline{X}_4$ be the estimator for the mean weight $μ$ of a fifty-cent coin.

Assume that a single measurement has a normal distribution with expectation $μ$ and variance $σ^2 = 0.04$.

You find out that $overline{x}_4 = 7.54$.

Investigate by using a statistical test whether $μ$ equals $7.5$ at significance level $α = 0.01$.




Solve:

I assume $H_0:mu=7.5$ and $H_1:muneq7.5$
So it is a two-tailed problem and I have an $alpha=0.005$ on the right and the same on the left. So from the table the critical values for these $alpha$ are 2.57 and -2.57.
So I can compute $Z=frac{7.48-7.5}{frac{sqrt{0.004}}{sqrt{4}}}=-0.63$ that is inside the region where we don't reject $H_0$ so we don't reject it.

Is it correct? Can someone please help me? Or I should use the p-value?










share|cite|improve this question









$endgroup$

















    2












    $begingroup$



    If you throw a coin in a vending machine, the coin is being weighed by the machine to determine its value.

    For statistical purposes, you decide to throw $4$ fifty-cent coins in this machine and let $overline{X}_4$ be the estimator for the mean weight $μ$ of a fifty-cent coin.

    Assume that a single measurement has a normal distribution with expectation $μ$ and variance $σ^2 = 0.04$.

    You find out that $overline{x}_4 = 7.54$.

    Investigate by using a statistical test whether $μ$ equals $7.5$ at significance level $α = 0.01$.




    Solve:

    I assume $H_0:mu=7.5$ and $H_1:muneq7.5$
    So it is a two-tailed problem and I have an $alpha=0.005$ on the right and the same on the left. So from the table the critical values for these $alpha$ are 2.57 and -2.57.
    So I can compute $Z=frac{7.48-7.5}{frac{sqrt{0.004}}{sqrt{4}}}=-0.63$ that is inside the region where we don't reject $H_0$ so we don't reject it.

    Is it correct? Can someone please help me? Or I should use the p-value?










    share|cite|improve this question









    $endgroup$















      2












      2








      2





      $begingroup$



      If you throw a coin in a vending machine, the coin is being weighed by the machine to determine its value.

      For statistical purposes, you decide to throw $4$ fifty-cent coins in this machine and let $overline{X}_4$ be the estimator for the mean weight $μ$ of a fifty-cent coin.

      Assume that a single measurement has a normal distribution with expectation $μ$ and variance $σ^2 = 0.04$.

      You find out that $overline{x}_4 = 7.54$.

      Investigate by using a statistical test whether $μ$ equals $7.5$ at significance level $α = 0.01$.




      Solve:

      I assume $H_0:mu=7.5$ and $H_1:muneq7.5$
      So it is a two-tailed problem and I have an $alpha=0.005$ on the right and the same on the left. So from the table the critical values for these $alpha$ are 2.57 and -2.57.
      So I can compute $Z=frac{7.48-7.5}{frac{sqrt{0.004}}{sqrt{4}}}=-0.63$ that is inside the region where we don't reject $H_0$ so we don't reject it.

      Is it correct? Can someone please help me? Or I should use the p-value?










      share|cite|improve this question









      $endgroup$





      If you throw a coin in a vending machine, the coin is being weighed by the machine to determine its value.

      For statistical purposes, you decide to throw $4$ fifty-cent coins in this machine and let $overline{X}_4$ be the estimator for the mean weight $μ$ of a fifty-cent coin.

      Assume that a single measurement has a normal distribution with expectation $μ$ and variance $σ^2 = 0.04$.

      You find out that $overline{x}_4 = 7.54$.

      Investigate by using a statistical test whether $μ$ equals $7.5$ at significance level $α = 0.01$.




      Solve:

      I assume $H_0:mu=7.5$ and $H_1:muneq7.5$
      So it is a two-tailed problem and I have an $alpha=0.005$ on the right and the same on the left. So from the table the critical values for these $alpha$ are 2.57 and -2.57.
      So I can compute $Z=frac{7.48-7.5}{frac{sqrt{0.004}}{sqrt{4}}}=-0.63$ that is inside the region where we don't reject $H_0$ so we don't reject it.

      Is it correct? Can someone please help me? Or I should use the p-value?







      probability statistics






      share|cite|improve this question













      share|cite|improve this question











      share|cite|improve this question




      share|cite|improve this question










      asked Jan 27 at 8:33









      Mark JaconMark Jacon

      1127




      1127






















          1 Answer
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          2












          $begingroup$

          You have written the population variance as $sigma^2 = 0.004,$ not $0.04.$
          Also, in the problem you state that $bar X = 7.54,$ but in your computation you have $7.48.$
          Otherwise, you seem to be on the right track.



          After fixing your typos, you should have $Z = 0.4.$ Then at level $alpha = 0.01 = 1%,$
          you would reject if $|Z| > 2.576,$ so you cannot reject.



          The P-value
          is the area under the standard normal curve outside the interval $(-.4,.4),$ which is $0.6892 > 0.01,$ and so (again) no rejection.



          My computations from R statistical software are shown below:



          (7.54-7.50)/ sqrt(.04/4)
          [1] 0.4
          qnorm(.995)
          [1] 2.575829
          2*pnorm(-.4)
          [1] 0.6891565


          Also, Minitab statistical software gives the following relevant output:



          One-Sample Z 

          Test of μ = 7.5 vs ≠ 7.5
          The assumed standard deviation = 0.2

          N Mean SE Mean 99% CI Z P
          4 7.540 0.100 (7.282, 7.798) 0.40 0.689


          Because your hypothetical mean $mu = 7.5$ is included in the 99%
          confidence interval, you would not reject at the 1% level.






          share|cite|improve this answer











          $endgroup$









          • 1




            $begingroup$
            Ohh yes, I see my errors, thank you, so I'll reject the null hypothesis when $Z>0.4$ and when $Z<-0.4$, because both are critical values, correct? And the p-value should be $P(Z>0.4)+P(Z<-0.4)$?
            $endgroup$
            – Mark Jacon
            Jan 27 at 11:38






          • 1




            $begingroup$
            Both comments correct. Also reject at 1% if 99% CI does not include hypothetical mean. 99% CI when $sigma$ is known is of form $bar X pm 2.576sigma/sqrt{n}.$ Try it and compare with CI in Minitab output.
            $endgroup$
            – BruceET
            Jan 27 at 19:29













          Your Answer





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          active

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          2












          $begingroup$

          You have written the population variance as $sigma^2 = 0.004,$ not $0.04.$
          Also, in the problem you state that $bar X = 7.54,$ but in your computation you have $7.48.$
          Otherwise, you seem to be on the right track.



          After fixing your typos, you should have $Z = 0.4.$ Then at level $alpha = 0.01 = 1%,$
          you would reject if $|Z| > 2.576,$ so you cannot reject.



          The P-value
          is the area under the standard normal curve outside the interval $(-.4,.4),$ which is $0.6892 > 0.01,$ and so (again) no rejection.



          My computations from R statistical software are shown below:



          (7.54-7.50)/ sqrt(.04/4)
          [1] 0.4
          qnorm(.995)
          [1] 2.575829
          2*pnorm(-.4)
          [1] 0.6891565


          Also, Minitab statistical software gives the following relevant output:



          One-Sample Z 

          Test of μ = 7.5 vs ≠ 7.5
          The assumed standard deviation = 0.2

          N Mean SE Mean 99% CI Z P
          4 7.540 0.100 (7.282, 7.798) 0.40 0.689


          Because your hypothetical mean $mu = 7.5$ is included in the 99%
          confidence interval, you would not reject at the 1% level.






          share|cite|improve this answer











          $endgroup$









          • 1




            $begingroup$
            Ohh yes, I see my errors, thank you, so I'll reject the null hypothesis when $Z>0.4$ and when $Z<-0.4$, because both are critical values, correct? And the p-value should be $P(Z>0.4)+P(Z<-0.4)$?
            $endgroup$
            – Mark Jacon
            Jan 27 at 11:38






          • 1




            $begingroup$
            Both comments correct. Also reject at 1% if 99% CI does not include hypothetical mean. 99% CI when $sigma$ is known is of form $bar X pm 2.576sigma/sqrt{n}.$ Try it and compare with CI in Minitab output.
            $endgroup$
            – BruceET
            Jan 27 at 19:29


















          2












          $begingroup$

          You have written the population variance as $sigma^2 = 0.004,$ not $0.04.$
          Also, in the problem you state that $bar X = 7.54,$ but in your computation you have $7.48.$
          Otherwise, you seem to be on the right track.



          After fixing your typos, you should have $Z = 0.4.$ Then at level $alpha = 0.01 = 1%,$
          you would reject if $|Z| > 2.576,$ so you cannot reject.



          The P-value
          is the area under the standard normal curve outside the interval $(-.4,.4),$ which is $0.6892 > 0.01,$ and so (again) no rejection.



          My computations from R statistical software are shown below:



          (7.54-7.50)/ sqrt(.04/4)
          [1] 0.4
          qnorm(.995)
          [1] 2.575829
          2*pnorm(-.4)
          [1] 0.6891565


          Also, Minitab statistical software gives the following relevant output:



          One-Sample Z 

          Test of μ = 7.5 vs ≠ 7.5
          The assumed standard deviation = 0.2

          N Mean SE Mean 99% CI Z P
          4 7.540 0.100 (7.282, 7.798) 0.40 0.689


          Because your hypothetical mean $mu = 7.5$ is included in the 99%
          confidence interval, you would not reject at the 1% level.






          share|cite|improve this answer











          $endgroup$









          • 1




            $begingroup$
            Ohh yes, I see my errors, thank you, so I'll reject the null hypothesis when $Z>0.4$ and when $Z<-0.4$, because both are critical values, correct? And the p-value should be $P(Z>0.4)+P(Z<-0.4)$?
            $endgroup$
            – Mark Jacon
            Jan 27 at 11:38






          • 1




            $begingroup$
            Both comments correct. Also reject at 1% if 99% CI does not include hypothetical mean. 99% CI when $sigma$ is known is of form $bar X pm 2.576sigma/sqrt{n}.$ Try it and compare with CI in Minitab output.
            $endgroup$
            – BruceET
            Jan 27 at 19:29
















          2












          2








          2





          $begingroup$

          You have written the population variance as $sigma^2 = 0.004,$ not $0.04.$
          Also, in the problem you state that $bar X = 7.54,$ but in your computation you have $7.48.$
          Otherwise, you seem to be on the right track.



          After fixing your typos, you should have $Z = 0.4.$ Then at level $alpha = 0.01 = 1%,$
          you would reject if $|Z| > 2.576,$ so you cannot reject.



          The P-value
          is the area under the standard normal curve outside the interval $(-.4,.4),$ which is $0.6892 > 0.01,$ and so (again) no rejection.



          My computations from R statistical software are shown below:



          (7.54-7.50)/ sqrt(.04/4)
          [1] 0.4
          qnorm(.995)
          [1] 2.575829
          2*pnorm(-.4)
          [1] 0.6891565


          Also, Minitab statistical software gives the following relevant output:



          One-Sample Z 

          Test of μ = 7.5 vs ≠ 7.5
          The assumed standard deviation = 0.2

          N Mean SE Mean 99% CI Z P
          4 7.540 0.100 (7.282, 7.798) 0.40 0.689


          Because your hypothetical mean $mu = 7.5$ is included in the 99%
          confidence interval, you would not reject at the 1% level.






          share|cite|improve this answer











          $endgroup$



          You have written the population variance as $sigma^2 = 0.004,$ not $0.04.$
          Also, in the problem you state that $bar X = 7.54,$ but in your computation you have $7.48.$
          Otherwise, you seem to be on the right track.



          After fixing your typos, you should have $Z = 0.4.$ Then at level $alpha = 0.01 = 1%,$
          you would reject if $|Z| > 2.576,$ so you cannot reject.



          The P-value
          is the area under the standard normal curve outside the interval $(-.4,.4),$ which is $0.6892 > 0.01,$ and so (again) no rejection.



          My computations from R statistical software are shown below:



          (7.54-7.50)/ sqrt(.04/4)
          [1] 0.4
          qnorm(.995)
          [1] 2.575829
          2*pnorm(-.4)
          [1] 0.6891565


          Also, Minitab statistical software gives the following relevant output:



          One-Sample Z 

          Test of μ = 7.5 vs ≠ 7.5
          The assumed standard deviation = 0.2

          N Mean SE Mean 99% CI Z P
          4 7.540 0.100 (7.282, 7.798) 0.40 0.689


          Because your hypothetical mean $mu = 7.5$ is included in the 99%
          confidence interval, you would not reject at the 1% level.







          share|cite|improve this answer














          share|cite|improve this answer



          share|cite|improve this answer








          edited Jan 27 at 11:07

























          answered Jan 27 at 10:42









          BruceETBruceET

          36k71540




          36k71540








          • 1




            $begingroup$
            Ohh yes, I see my errors, thank you, so I'll reject the null hypothesis when $Z>0.4$ and when $Z<-0.4$, because both are critical values, correct? And the p-value should be $P(Z>0.4)+P(Z<-0.4)$?
            $endgroup$
            – Mark Jacon
            Jan 27 at 11:38






          • 1




            $begingroup$
            Both comments correct. Also reject at 1% if 99% CI does not include hypothetical mean. 99% CI when $sigma$ is known is of form $bar X pm 2.576sigma/sqrt{n}.$ Try it and compare with CI in Minitab output.
            $endgroup$
            – BruceET
            Jan 27 at 19:29
















          • 1




            $begingroup$
            Ohh yes, I see my errors, thank you, so I'll reject the null hypothesis when $Z>0.4$ and when $Z<-0.4$, because both are critical values, correct? And the p-value should be $P(Z>0.4)+P(Z<-0.4)$?
            $endgroup$
            – Mark Jacon
            Jan 27 at 11:38






          • 1




            $begingroup$
            Both comments correct. Also reject at 1% if 99% CI does not include hypothetical mean. 99% CI when $sigma$ is known is of form $bar X pm 2.576sigma/sqrt{n}.$ Try it and compare with CI in Minitab output.
            $endgroup$
            – BruceET
            Jan 27 at 19:29










          1




          1




          $begingroup$
          Ohh yes, I see my errors, thank you, so I'll reject the null hypothesis when $Z>0.4$ and when $Z<-0.4$, because both are critical values, correct? And the p-value should be $P(Z>0.4)+P(Z<-0.4)$?
          $endgroup$
          – Mark Jacon
          Jan 27 at 11:38




          $begingroup$
          Ohh yes, I see my errors, thank you, so I'll reject the null hypothesis when $Z>0.4$ and when $Z<-0.4$, because both are critical values, correct? And the p-value should be $P(Z>0.4)+P(Z<-0.4)$?
          $endgroup$
          – Mark Jacon
          Jan 27 at 11:38




          1




          1




          $begingroup$
          Both comments correct. Also reject at 1% if 99% CI does not include hypothetical mean. 99% CI when $sigma$ is known is of form $bar X pm 2.576sigma/sqrt{n}.$ Try it and compare with CI in Minitab output.
          $endgroup$
          – BruceET
          Jan 27 at 19:29






          $begingroup$
          Both comments correct. Also reject at 1% if 99% CI does not include hypothetical mean. 99% CI when $sigma$ is known is of form $bar X pm 2.576sigma/sqrt{n}.$ Try it and compare with CI in Minitab output.
          $endgroup$
          – BruceET
          Jan 27 at 19:29




















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