Scribd
Upload
36 views

Conducting Hypothesis Testing P-Value Proportion Sample

The insurance company should begin an advertising campaign based on the sample evidence. A sample of 50 families had an average of $9,600, which is less than the hypothesized $10,000 average. A t-test found the difference to be statistically significant at the 0.05 level. Therefore, the average amount carried per family is likely less than $10,000 in the population. Additionally, the sample data indicates there is no improvement in the country's economy. A z-test found that the proportion of people who believe the economy improved was significantly different than the hypothesized 65% at the 0.05 level.

Uploaded by

G16 PEREZ, SHAN GAIL P.
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
36 views

Conducting Hypothesis Testing P-Value Proportion Sample

The insurance company should begin an advertising campaign based on the sample evidence. A sample of 50 families had an average of $9,600, which is less than the hypothesized $10,000 average. A t-test found the difference to be statistically significant at the 0.05 level. Therefore, the average amount carried per family is likely less than $10,000 in the population. Additionally, the sample data indicates there is no improvement in the country's economy. A z-test found that the proportion of people who believe the economy improved was significantly different than the hypothesized 65% at the 0.05 level.

Uploaded by

G16 PEREZ, SHAN GAIL P.
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

1) Suppose an insurance company will begin an extensive advertising

campaign to sell insurance if it thinks that the average amount carried by


per family is less than Php 10,000 and the standard deviation is Php 1,000.
A random sample of 50 families in the area has an average of Php 9,600. On
the basis of the sample evidence, should the company begin the advertising
campaign at 0.05 level of significance? (Use P-value Method)
STEP 1: STATE THE HYPOTHESES
Ho 𝜇 = 10,000
H1 𝜇 < 10,000
STEP 2: CALCULATE TEST STATISTICS AND P VALUE
Left tailed
Z

Z
Z = -2.83

P (z<-2.83) = 0.5- 0.4977


P-val= 0.0023
0.0023 < 0.05 ∴ the null hypothesis is rejected.
STEP 3: INTERPRETATION
There is strong evidence against Ho. There is significant difference between
the sample mean and the population mean the result implies that the sample
does not belong to the population and the sample population is less than the
average. Therefore, we can interpret from the data presented that the
insurance company will begin an extensive advertising campaign to sell
insurance since the average amount carried by per family is less than Php
10,000.
2) It is claimed that last year, 65% of the people believed that there was an
improvement in the country’s economy. Suppose this year, only 270 out of
450 people randomly selected believe that there is an improvement in the
country’s economy. Does this indicate that there is an improvement in the
country’s economy? Use a 0.05 significance level. (Traditional Method)
STEP 1: STATE THE HYPOTHESES
Ho 𝑝 = 0.65 H1 𝑝 ≠ 0.65
STEP 2: CALCULATE TEST STATISTICS
Two tailed
Z crit = ±1.96

(p̂ − p)

pq
√
𝑛

We know that -2.22 < ±1.96 ∴ there is enough evidence to reject the null
hypothesis
STEP 3: INTERPRETATION

Thus, based on the evidence at hand, we can reject the null hypothesis Ho as it
lies in the rejection region and has significant difference between the sample
proportion and the population proportion of the country’s economy. Therefore,
with the data presented, we can say that there is no improvement in the
country’s economy.

You might also like