Business Statistic

Tutorial 9
Chapter 11

1. NURUL HASZATUL NAZUHA BINTI MELBIN

(CIB170090)

1. NOOR AINAA AZYAN BINTI ZULKARNAIN

(CIC190045)

1. AMELDA BINTI MOHD BAKRI RAHAIMI

(CIB170003)

1. SITI NURBALQISH BINTI NOOR HISHAM

(CIB190098)
 Q 1. The U.S. Department of Labor collects data on unemployment insurance payments.
Suppose that during 2009 a random sample of 80 unemployed people in Alabama received an
average weekly benefit of $201.85, whereas a random sample of 65 unemployed people in
Mississippi received an average weekly salary of $185.31. Assume that the population standard
deviations of all weekly unemployed benefits in Alabama and Mississippi are $32.48 and
$26.15, respectively. Using the 4% significance level, can you conclude that the means of all
weekly unemployment benefits in Alabama and Mississippi paid during 2009 are different?

Step 1 : Step 2 : Step 3 :

Ho : µ1 = µ2 The 0.04 significance level is Because both population

requested in the problem standard deviation are known,
we can use the z-distribution as
HI : µ1 = µ2 the test statistic.
 The computed variable
Step 4 : Rejection
region Rejection value of 3.3970 is
0.02 region larger than the critical
0.02
value of 2.05
Our decision is to
reject the null
2.05 hypothesis.
critical value

Step 5 :
Step 6 :
Z=
The data show sufficient
evidence that there is a
= difference in the mean of all
weekly unemployment benefits
= in Alabama and Mississippi paid
during 2009.
= 3.3970
QUESTION 2
A random sample of 20 customers who drive luxury cars showed that their average
distance driven between oil changes was 3187 miles with a sample standard deviation
of 42.50 miles.Another sample of 10 customers who drive compact lower-price cars
resulted in an average distance of 3214 miles with a sample standard deviation of 50.70
miles. Suppose that the standard deviations for the two populations are equal . Using
the 5% significance level, can you conclude that the mean distance between oil changes
is lower for all luxury cars than for all compact lower -price cars?
ANSWERS:

i. Let , luxury car = L ii. Let, compact lower-price = C

nL = 20 nC = 10
XL = 3187 xC = 3214
SL = 42.50 S C = 50.70

STEP 1 : Ho = µL ≥ µC HI = µL < µC

STEP 2 : The 0.05 significance level is stated in the problem. (5% significance level)

STEP 3 : Because the population standard deviations are unknown, but are assumed to be

equal, use the pooled t-test.

STEP 4 : nL + nC - 2
= 20 +10 -2
= 28 (find t -value
in the Table 7 )

Reject Do not reject Use Pooled t-test

The decision
-1.701 -1.54
is not to
(b) t = xL - xC reject the null
hypothesis
STEP 5 : (a) ( nL - 1) (SL)2+ (nC-1) (SC)2 Sp 2 ( 1/nL + 1/nc ) because -
1.54 falls
nL + nc -2 = 3187 - 3214 more than -
= (20 - 1 ) (42.50)2 + (10-1) (50.70)2 1.701
2051.90 (1/20
(20 +10 -2) +1/10)
= 34318.75 + 23134.41
28 = -27 / 17.544 =-
= 2051.90 1.54
STEP 6 : Conclusion

- The decision is not to reject the null hypothesis because -1.54 falls more than

-1.701

- The data show no evidence that the mean distance between oil changes is
lower for

all luxury cars than for all compact lower price cars.
 QUESTION 3
A company sent seven of its employees to attend a course in building self-
confidence. These employees were evaluated for their self-confidence before and
after attending this course. The following table gives the scores (on a scale 1 to 15,
1 being the lowest and 15 being the highest scores) of these employees before and
after they attend the course.
Before 8 5 4 9 6 9 5

After 10 8 5 11 6 7 9

Test at the 1% significance level whether attending this course increases the mean score
of employees.
Step 1 : State the null and the alternate hypotheses.

Ho = µd ≤ 0 HI : µd > 0
Step 2 : State the level of significance.
The .01 significance level is stated in the question.

Step 3 : Select the appropriate test statistic.

To test the difference between two population means with dependent samples, I use the
t-statistic.
 Step 4 : State the decision rule.
Reject Ho if

Step 5 : Take a sample and make a decision.

Employee After Before Difference, d

1 10 8 2 0.571 0.33

2 8 5 3 1.571 2.47

3 5 4 1 -0.429 0.18

4 11 9 2 0.571 0.33

5 6 6 0 -1.429 2.04

6 7 9 -2 -3.429 11.76

7 9 5 4 2.571 6.61

Total 10 23.72
The value of the test statistic is 1.902, found by Not to
reject
Reject

1.902 3.143

The computed value of t, 1.902, is lower than critical value, 3.143, so the
decision is not to reject the null hypothesis.

Step 6 : Interpret the result.

The data indicates that there is an increases in the mean score of the
employees by attending this course.
 Question 4
According to a June 2009 report, 68% of people with ‘green’ jobs in North America felt
that they had job security, whereas 60% of people with green jobs in the United
Kingdom felt that they had job security. Suppose that these results were based on
samples of 305 people with green jobs from North America and 280 people with green
jobs from the United Kingdom. Using the 2% significance level, can you conclude that the
proportion of all people with green jobs in North America who feel that they have job
security is higher than the corresponding proportion for the United Kingdom?

Let North America is N Let United Kingdom is U

nN = 305 nU =280

pN= 68%/ 0.68 pU =60%/ 0.06

Step 1 : Step 2 : Step 3 :

The 0.02 significance Use the Z -distribution to

Ho : πN ≤ πU level is stated in the approximate the binomial
problem distribution because the
HI : πN > πU sample sizes are relatively
large.
 Step 4 :
Rejection
region
The computed variable
0.02 value of 2.014 is
smaller than the critical
value of 2.05

2.05
critical value
Step 5 :

Z=
Step 6 :

● The data shows no evidence that the proportion of

all people with green jobs in North America who
=
feel that they have job security is higher than the
corresponding population for the UK.
= ● By observation, the proportion of all people with
green jobs who feel that they have job security
prefer in UK.
=
● Our decision is to not reject the null hypothesis.

= 2.014