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  • Problem S8

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    Katherine Sauer
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    The document contains 4 hypothesis testing problems from an economics class: 1) Testing whether the average hours college students spend on educational activities is 25 hours based on a sample mean of 22 hours and 27 hours. 2) Testing a recreation center's claim that at least 85% of students use its facilities based on a sample where 20% did not. 3) Testing whether the average starting salaries of accounting and marketing students differs significantly based on sample data. 4) Testing whether the rate of back surgeries is at least 10% higher in one town compared to another based on sample data.

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    The document contains 4 hypothesis testing problems from an economics class: 1) Testing whether the average hours college students spend on educational activities is 25 hours based on a sample mean of 22 hours and 27 hours. 2) Testing a recreation center's claim that at least 85% of students use its facilities based on a sample where 20% did not. 3) Testing whether the average starting salaries of accounting and marketing students differs significantly based on sample data. 4) Testing whether the rate of back surgeries is at least 10% higher in one town compared to another based on sample data.

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    13 views2 pages

    Problem S8

    Uploaded by

    Katherine Sauer
    The document contains 4 hypothesis testing problems from an economics class: 1) Testing whether the average hours college students spend on educational activities is 25 hours based on a sample mean of 22 hours and 27 hours. 2) Testing a recreation center's claim that at least 85% of students use its facilities based on a sample where 20% did not. 3) Testing whether the average starting salaries of accounting and marketing students differs significantly based on sample data. 4) Testing whether the rate of back surgeries is at least 10% higher in one town compared to another based on sample data.

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    Attribution Non-Commercial (BY-NC)
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    of 2

    Name: __________________________________________________

    Economics Dr. Sauer

    Ch 8: Hypothesis Testing 1. A news article reports that college students spend an average of 25 hours per week on educational activities (attending class, doing homework, etc). The standard deviation is 10 hours. A random sample of 80 students is selected and the average number of hours spend on educational activities is calculated to be 22 hours. Use the 5% significance level. a. Use a hypothesis test to validate or reject the claim that the average number of hours spent on educational activities is 25 hours.

    b. Suppose instead the sample mean was calculated to be 27 hours. Use a hypothesis test to validate or reject the claim that the average number of hours spent on educational activities is 25 hours.

    c. Comment on your results from parts a and b.

    2. The student recreation center claims that at least 85% of students use the recreational facilities at least once in an academic year. You randomly sample 100 students and find that 20 of them have never used the recreation facilities. Test the rec centers claim at the 5% level.

    3. A college surveys its recent graduates on their starting salaries. 1200 accounting students respond and have an average salary of $42,000 with a standard deviation of $750. 2500 marketing students respond and have an average salary of $40,000 with a standard deviation of $2000. At the 1% level, is there a significant difference in salary for these two groups?

    4. A researcher is examining back surgery rates in two nearby towns. The researcher randomly selects patient files for patients with a particular diagnosis of back pain and looks to see how many times surgery is the treatment. In St. Cloud, MN a sample of 100 patient records revealed that 29 people underwent surgery. In Stillwater, MN a sample of 75 patient records revealed that 20 people underwent surgery. At the 5% level, test the claim that St. Cloud has at least a 10% higher incidence of back surgeries than Stillwater.

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