Question

Watch Corporation of Switzerland claims that its watches on average will neither gain nor lose time during a week. A sample of 18 watches provided the following gains (+) or losses (-) in seconds per week. Is it reasonable to conclude that the mean gain or loss in time for the watches is 0?

0.10
0.30
0.40
-0.32
-0.20
-0.23
0.40
0.25
-0.10
-0.37
-0.61
-0.10
-0.20
-0.64
0.30
-0.20
-0.68
-0.30

(a) State the decision rule for 0.01 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
Reject H0: μ = 0 if t < __________ or t > ____________

(b) Compute the Value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

(c) What is your decision regarding the null hypothesis?
(Reject OR Cannot Reject) H0: μ = 0. The p-value is
between 0.10 and 0.20
between 0.01 and 0.02
between 0.001 and 0.01
between 0.05 and 0.10
less than 0.001
between 0.02 and 0.05
greater than 0.20

Answer 1

a)

Reject H0: μ = 0 if t < -2.898 or t >2.898

b)

Value of the test statistic t =-1.49

c)

Cannot Reject Ho

p value

between 0.10 and 0.20