1. 1 Business 90: Business Statistics Professor David Mease Sec 03, T R 7:30-8:45AM BBC 204 Lecture 26 = Review Chapter “Fundamentals of Hypothesis Testing: One-Sample Tests” (FOHT) and Review for Final Agenda: 1) Go over Homework 9 2) Discuss final exam (Friday May 21 at 7:15 AM) 3) Do teaching evaluations 4) Take quiz over Homework 9 5) Go over solutions to quiz over Homework 9

2. 2 1) Read chapter entitled “Fundamentals of Hypothesis Testing: One-Sample Tests” but only sections 1, 2 and 3. 2) In that chapter do textbook problems 42 (parts a, c and d) and 44 (parts a, c and d). (In 42 the alternative hypothesis is that the mean is less than 2.8, and in 44 the alternative hypothesis is that the mean is less than 8.) 3) Redo/practice/study In Class Exercises #101, #102 and #103. Homework 9 – Due Thursday 5/13

3. 3 Table 2

4. 4 In class exercise #101: A consumer group claims that a nation-wide fast food chain has less than 4 ounces of beef in their quarter pound hamburger. To investigate this claim, they take a sample of 36 hamburgers and observe that the mean weight is 3.28 ounces. Assuming that the population standard deviation is 2 ounces, test the null hypothesis that the mean is at least 4 ounces at the 5% significance level. Null Hypothesis:Alternative Hypothesis: P-value: Decision: Conclusion:

5. 5 In class exercise #102: SJSU claims that the average age of its students is 24. One student felt that this number was too low, and took a sample of 20 students for which the mean age was 25.7. Assuming that the population standard deviation is 5 years, test the alternative hypothesis that the mean age is greater than 24 at the 1% significance level. Null Hypothesis: Alternative Hypothesis: P-value: Decision: Conclusion:

6. 6 In class exercise #103: A) If you rejected the null hypothesis using a 5% significance level, what would be your decision at the 10% level? B) If you did not reject the null hypothesis using a 5% significance level, what would be your decision at the 10% level? C) If you rejected the null hypothesis using a 5% significance level, what would be your decision at the 1% level? D) If you did not reject the null hypothesis using a 5% significance level, what would be your decision at the 1% level?

7. 7 Information about the Final: The final exam will be Friday May 21 7:15 AM to 9:30 AM in this room - 120 total points ( 120/(120+260)=32% of grade) - Approximately 35 questions - Covers all chapters listed on greensheet (cumulative) - Closed notes / closed book - Remember to bring a calculator - If you oversleep, come anyway - Formulas and tables are exactly like the review sheet - Review sheet solutions are on the web page ***Seats will be assigned when you get in the room***