Hypothesis Testing - Practice Questions for Exam | BA 253, Exams of Business Statistics

Download Hypothesis Testing - Practice Questions for Exam | BA 253 and more Exams Business Statistics in PDF only on Docsity! BA 253: Business Statistics 10/27/08 This Week More HT Hypothesis Testing  H0: μ = _____ (null hypothesis)null hypothesis)  Ha: μ (null hypothesis)≠, >, <) _____ (null hypothesis)alternative hypothesis)  α = _____% (null hypothesis)significance level)  Need two things: Critical Value(s) and Test Statistic  Find zcrit from table.  Calculate zstat.  If zstat is in acceptance region (null hypothesis)near the middle), accept H0; if zstat is in the rejection region, reject H0.  Can also solve using the p-value: o Find the p-value from table or calculator. o If p is small (null hypothesis)< α), reject H0; if p is big (null hypothesis)≥ α), accept H0. o What is the p-value? It’s the probability that we would see the sample we got, assuming that H0 is really true. If that probability is small, H0 may not be true and we reject it. If that probability is big, H0 is likely true and we accept it. Finish Examples D) and E). Hypothesis Testing with Two Means  Compare the population means of two distinct groups.  Similar technique, more calculation.  Useful on term project. Ex 1: Do tourists in Durango spend the same during winter as they do during summer, or are the amounts different? A survey was conducted during January and then again in July. Tourists were asked how much they spent per day while visiting Durango. At a 5% level of significance, do tourists spend the same during both seasons? Season n x s Winter 50 $246 $110 Summer 40 $195 $98