Hypothesis Testing, Part I Group Learning Outcomes The group will select the appropriate distributions to use in each case. The group will conduct hypothesis tests and interpret the results. Single Mean, Single Proportion: Television Survey In a recent survey, it was stated that Americans watch television on average four hours per day. Assume that = 2. Using the data provided, conduct a hypothesis test to determine if the average is lower. 1. Ho = ________________________________________________________ Ha = ________________________________________________________ 2. In words, define the random variable. __________ = ______________________ The distribution to use for the test is _______________________. 3. Determine the test statistic using following data (sample size: 25). Hours of television watched per day as reported by survey respondents: 3 2 2 4 3 1 4 5 3 3 4 6 3 2 4 3 4 6 2 5 4 3 2 0 3 4. Determine p - value. 5. Do you or do you not reject Ho ? Why? Write a clear conclusion using complete sentences. ********************************************************************************** 1 Two Means and Two Proportions: Stock Performance Survey Eight stocks are randomly picked from the newspaper. Using two consecutive days' business sections, test whether the stocks went down, on average, for the second day. Data follows: Stock Name Company A Company B Company C Company D Company E Company F Company G Company H First Day Close ($ per share) 15.50 7.25 45.00 135.00 22.50 115.50 63.00 25.00 Second Day Close ($ per share) 15.25 7.00 45.00 133.00 25.00 116.00 62.00 24.00 6. Ho = ________________________________________________________ Ha = ________________________________________________________ 7. In words, define the random variable. __________ = ______________________ The distribution to use for the test is ___________________________________. 8. Determine the test statistic using data above. 9. Determine p - value. 10. Do you or do you not reject Ho ? Why? Write a clear conclusion using complete sentences. 2