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Is this an upper tail, lower tail, or two-tail test?

LAB #3

Question # 1

In 1990, 5.8% of job applicants who were tested for drugs failed the test. A random sample of 1440 current job applicants results in 61 failures (based loosely on data from the American Management Association). At the a = 0.01 significance level, test the below claim (i.e., that the failure rate is now lower)

HO: p = 0.058

HA: p < 0.058

a) Is this an upper tail, lower tail, or two-tail test? (5 points)

b) Are we testing means or proportions? (5 points)

c) State the rule of rejection (in terms of p-value and level of significance) (5 points)

d) Find the p-value (5 points)

e) Should you reject or not reject HO? (5 points)

f) Does the result suggest that fewer job applicants now use drugs? (5 points)

Question # 2

Researchers studying infant head circumferences (in centimeters) wish to test if the mean head circumference differs from the historical mean of 34.5 cm. The researchers obtain a sample of 17 infants with a mean head circumference of 34.16 cm and a standard deviation of 0.58 cm.

At the a = 0.05 significance level, test the claim

HO: µ= 34.5

HA: µ? 34.5

a) Is this an upper tail, lower tail, or two-tail test? (5 points)

b) Are we testing means or proportions? (5 points)

c) State the rule of rejection (in terms of p-value and level of significance) (5 points)

d) Find the p-value (5 points)

e) Should you reject or not reject HO? (5 points)

f) Does the result suggest that the mean head circumference differs from 34.5 cm? (5 points)

Question # 3

Perform the following hypothesis test on the paired data below:

HO: µd = 0 (Please recall that µdis read ~ and also known as ~ Mu-sub-d)

HA: µd ? 0 Test at a= 0.05

Before

30

72

97

59

61

57

57

89

92

After

57

68

98

62

67

71

68

96

98

a) Is this an upper tail, lower tail, or two-tail test? (5 points)

b) Are we testing means or proportions? (5 points)

c) State the rule of rejection (in terms of p-value and level of significance) (5 points)

d) Find the p-value (5 points)

e) Should you reject or not reject HO? (5 points)

f) Do the data provide sufficient evidence to suggest the Afterscores are indeed higher?

Why or why not? (5 points)

Note: Because the above is a two-tail test, rejection of Ho alone is not a sufficient reason. Hint: What else did you observe among the sample results?

Question # 4

The below sample data represents the cost of 9 name-brand drugs and their corresponding generic equivalent. (Use Name Brand as Sample1)

Name Brand

120

150

135

140

160

175

140

120

165

Generic Brand

99

135

130

119

139

150

129

109

160

a) Compute a two-sided 90% confidence Interval estimate for µd. (5 points)

b) Based on your interval, can you safely conclude that generics are less expensive than name brand? Why or why not? (5 points)