The X Tire Company Problem. A Business Application Suppose that the X Tire Company has just developed a new steel-belted tire that will be sold through.

Slides:

Advertisements

Similar presentations

“Students” t-test.

Advertisements

The Normal Distribution

BA 275 Quantitative Business Methods

Section 5.2 Normal Distributions: Finding Probabilities.

Normal Distributions: Finding Probabilities

Suppose Z ~ N(0, 1). Use the standard Normal table or your calculator to find P(z  -2.30)

The Normal Distribution

BA 452 Lesson C.2 Waiting Line Simulation 1 ReadingsReadings Chapter 12 Simulation.

The Normal Distribution

Yaochen Kuo KAINAN University . SLIDES . BY.

Assuming normally distributed data! Naïve Bayes Classifier.

Tests of Hypotheses: Large Samples Chapter Rejection region Acceptance

Ka-fu Wong © 2007 ECON1003: Analysis of Economic Data Lesson8-1 Lesson 8: One-Sample Tests of Hypothesis.

6-5 The Central Limit Theorem

Find the indicated z score: z = Find the indicated z score:.6331 z 0 z = –

BCOR 1020 Business Statistics Lecture 20 – April 3, 2008.

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 LIND MASON MARCHAL 1-1 Chapter Eight Tests of Hypothesis Large Samples GOALS When you have completed.

Testing Hypotheses about a Population Proportion Lecture 29 Sections 9.1 – 9.3 Tue, Oct 23, 2007.

1 BA 275 Quantitative Business Methods Hypothesis Testing Elements of a Test Concept behind a Test Examples Agenda.

Basic Business Statistics, 11e © 2009 Prentice-Hall, Inc. Chap 8-1 Confidence Interval Estimation.

Copyright (C) 2002 Houghton Mifflin Company. All rights reserved. 1 Procedure for Hypothesis Testing 1. Establish the null hypothesis, H 0. 2.Establish.

Chapter 7 Hypothesis testing. §7.1 The basic concepts of hypothesis testing  1 An example Example 7.1 We selected 20 newborns randomly from a region.

Introduction to Summary Statistics

FINAL REVIEW. The amount of coffee (in ounces) filled in a jar by a machine has a normal distribution with a mean amount of 16 ounces and a standard deviation.

4-1 Normal Unit 4 The Normal Curve and Normal Approximation FPP Chapter 5 1. Symmetric about zero 2. Area under the curve = 100% 3. Always above the horizontal.

STEP BY STEP Critical Value Approach to Hypothesis Testing 1- State H o and H 1 2- Choose level of significance, α Choose the sample size, n 3- Determine.

Maz Jamilah Masnan Institute of Engineering Mathematics Semester I 2015/ Sampling Distribution of Mean and Proportion EQT271 ENGINEERING STATISTICS.

Tests of Hypotheses Involving Two Populations Tests for the Differences of Means Comparison of two means: and The method of comparison depends on.

THE NORMAL DISTRIBUTION AMIN SOKHANVAR

Topic 5 - Joint distributions and the CLT

Inen 460 Lecture 2. Estimation (ch. 6,7) and Hypothesis Testing (ch.8) Two Important Aspects of Statistical Inference Point Estimation – Estimate an unknown.

Hypothesis Testing Errors. Hypothesis Testing Suppose we believe the average systolic blood pressure of healthy adults is normally distributed with mean.

Exercise - 1 A package-filling process at a Cement company fills bags of cement to an average weight of µ but µ changes from time to time. The standard.

Statistical Inference Statistical inference is concerned with the use of sample data to make inferences about unknown population parameters. For example,

Understanding Basic Statistics Fourth Edition By Brase and Brase Prepared by: Lynn Smith Gloucester County College Chapter Nine Hypothesis Testing.

Chapter 9: One- and Two-Sample Estimation Problems: 9.1 Introduction: · Suppose we have a population with some unknown parameter(s). Example: Normal( ,

Let A and B be two independent events for which P(A) = 0.15 and P(B) = 0.3. Find P(A and B).

§2.The hypothesis testing of one normal population.

Hypothesis Testing. Suppose we believe the average systolic blood pressure of healthy adults is normally distributed with mean μ = 120 and variance σ.

Example A population has a mean of 200 and a standard deviation of 50. A random sample of size 100 will be taken and the sample mean x̄ will be used to.

STEP BY STEP Critical Value Approach to Hypothesis Testing 1- State H o and H 1 2- Choose level of significance, α Choose the sample size, n 3- Determine.

Continuous Probability Distributions Chapter 7 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Sampling Distribution of a Sample Proportion Lecture 28 Sections 8.1 – 8.2 Wed, Mar 7, 2007.

Hypothesis testing. Inferential statistics Estimation Hypothesis testing.

Lesson 11.2 Populations and Samples

Tests of hypothesis Contents: Tests of significance for small samples

Continuous Probability Distributions

The Normal Probability Distribution

Continuous Probability Distributions

Chapter 6 Continuous Probability Distributions

CHAPTER 10 Estimating with Confidence

Introduction to Summary Statistics

Normal Distribution.

Introduction to Summary Statistics

Inferential Statistics

Chapter 8 Interval Estimation

Introduction to Probability & Statistics The Central Limit Theorem

Mixed Examples of Hypothesis Testing & Confidence Intervals

Lecture Slides Elementary Statistics Twelfth Edition

Estimation Interval Estimates Industrial Engineering

Sampling Distribution of a Sample Mean

Sampling Distributions

The Normal Probability Distribution

Sampling Distribution of a Sample Mean

Testing Hypotheses about a Population Proportion

Lecture 7 Sampling and Sampling Distributions

Chapter 10 Basic Statistics Hypothesis Testing

Warmup Which of the distributions is an unbiased estimator?

Presentation transcript:

The X Tire Company Problem

A Business Application Suppose that the X Tire Company has just developed a new steel-belted tire that will be sold through a national chain of discount stores. X’s management believes that the mileage guarantee offered with tire will be an important factor in the acceptance of the product. Before finalizing the tire mileage guarantee policy, X’s management would like some probability information concerning the number of miles the tires will last.

X Tire Problem From actual road tests with tires, X’s engineering group has estimated the mean tire mileage at 36,500 miles and the standard deviation at 5000 miles. In addition the data collected indicate that a normal distribution is a reasonable assumption.

X Tire Problem Using the normal distribution, what percentage of the tires can be expected to last more than 40,000 miles? In other words, what is the probability that the tire mileage will exceed 40,000 miles??

X Tire Problem Let us assume that X is considering a guarantee that will provide a discount on an new set of tires if the original tires do not exceed the mileage stated in the guarantee. What should the guarantee mileage be if X would like no more than 10% of the tires to be eligible for the discount guarantee?