Chapter 8 Hypothesis practices for the exam

Part I (a) State the null and the alternate hypothesis. Identify the claim (b) Make a labeled diagram. Include: the Fail to Reject Ho region, the critical region, and the critical value(s). Identify the sampling distribution: Normal, Student t, or Chi-Square (c) Give the formula and compute the appropriate Test Statistic (d) Using (a) - (c) above, state your conclusion using appropriate statistical language 1.) A stockbroker thought that the average number of shares traded daily in NYSE was about 750 million. To test the claim, a researcher selected a random sample of 36 days and found the mean number of shares traded each day was 740 million. The standard deviation of the sample was 10.3 million shares. At the a = 0.05 level of significance, is there enough evidence to reject the broker's claim? 2.) The Statistical Abstracts (127* edition) reports that the mean annual expenditure for health care by individuals 25 to 34 years old is $4,200. A random sample of 24 college athletes between the ages of 25 to 34 had a sample mean expenditure of $3,900 with sample deviation $725. Test the claim that the mean expenditure for college athletes between the ages of 25 to 34 is less than the national average of $4,200. Use a 1% significance level. Assume the variable has a "mound-shaped" distribution