Question

Hypothesis Testing

Answer with daigrams please

7.         A financial services manager has heard that the average number of shares traded daily

on the New York Stock Exchange is 500 million. He doesn’t think that average is correct. He has a researcher take a random sample of 40 days and found that the daily average for these days was 506 million. The standard deviation for the sample was 10.3 million. With a level of significance (“α“) of .05, is there enough evidence to reject the 500 million-share claim?

                  a.         State the null and alternative hypotheses:

                                                H_o:                                                                                                       H₁:

           

                                    b.         What type of test is this (two-tailed, right-tailed, or left-tailed)?

                  c.         Draw a picture of the normal curve representing this test. Shade in the

area(s) meeting the level of significance.

d.         Plot the mean of the sample on the above graph.

e.         Can we reject H_o?

8.         Entry-level statistics majors are thought to have an average beginning salary of

$40,000. A university’s career counselor feels this number is too low (i.e., the average starting salary is > $40,000). 36 recent graduates with statistics majors were surveyed and found to have an average beginning salary of $41,000, with a standard deviation of $3,000. With an α of .05, can the counselor’s claim be supported?

Follow the same steps as you did in the first problem, answering/graphing the answers as appropriate. (Use back of the page if you need space.)

Answer 1