Application of the Null and Alternative Hypothesis

We all make decisions in our daily lives. Some of these decisions are important and some are insignificant. However, they all follow the same basic pattern. Similarly, hypothesis testing follows this pattern, except that it involves statistical information

Instructions

After studying the required resources in this module, analyze the following situation and follow the steps to complete the exercise:

• Situation: Many of the larger companies in a city have used the Alpha Employment Agency for years to screen their prospective employees. The selection test, historically applied, has provided results that are usually distributed around a mean of 90 and a standard deviation of 10. The Beta Agency has developed a new test that is faster and easier to administer, making it less expensive. Beta claims that their test results are the same as those obtained by Alpha. Many of the companies are considering a switch from the Alpha to the Beta Agency to reduce costs. However, they do not wish to make the change if the Beta test results have a different mean value. An independent testing company tested 40 prospective employees. The mean of the sample was 88. Suppose = 10
  • Note: Exercise of Kuby, J. textbook (2005). Estadstica elemental.

In order to perform this assignment, you must follow five steps:

Step 1: The Approach

1. Describe the population parameter of interest.
2. Establish the null hypothesis (H_o)) and the alternative hypothesis (H_a).

Step 2: Specify the testing criteria.

1. Verify the assumptions.
2. Identify the probability distribution and test statistic to be used.
3. Determine the level of significance .

Step 3: Collect and present sample evidence.

1. Collect sample information.
2. Calculate the value of the test statistic.

Step 4: Probability Distribution

1. Calculate the value of the test statistic.
2. Determine whether or not the value is less than

Step 5: Determine the results.

1. State the decision on the null hypothesis (H_o).
2. a conclusion on the alternative hypothesis (H_a).