1. Aim: Review Session 4 Hypothesis Testing Final 5/9 and 5/11

2. Recap: Sample Proportion When a random variable has two possible outcomes, we can use the sample proportion as a summary X is the interpreted random variable used n = known sample size

3. Example: Sample Proportion In a random sample of 150 seniors, 45 report taking transportation to school. What is the sample proportion? 1. Tells you the proportion that take transportation 2. Tells you the proportion that doesn’t take transportation.

4. Sample Size A sample size of 30 or more is considered significantly large enough to conduct statistical analysis Sample size of 30 or more  z test Sample size less than 30  t test

5. Two-Tailed Vs. One-Tailed Test Null hypothesis: the actual information given Alternative hypothesis: the claim/what you are testing

6. Z Test FOR SAMPLE GREATER THAN OR EQUAL TO 30

7. Z Test: Table E You recently received a job with a company that manufactures an automobile antitheft device. To conduct an advertising campaign for your product, you need to make a claim about the number of automobile thefts per year. Since the population of various cities in the United States varies, you decide to use rates per 10,000 people. (The rates are based on the number of people living in the cities.) Your boss said that last year the theft rate per 10,000 people was 44 vehicles. You want to see if it has changed. The following are rates per 10,000 people for 36 randomly selected locations in the United States. 50421256213473396923 94 73 245155266641671553 56 91 2078702562115173658 56 33 752016

8. Procedure 1.Hypothesis 2.Find test value 3.Find critical value (P-value)  Table E 4.Make a decision 5.Draw a conclusion/Summary

9. Decision Rule when using P-values If P-value ≤ α, reject the null hypothesis. If P-value > α do not reject the null hypothesis.

11. T Test SAMPLE SIZE LESS THAN 30

12. T test: Table F A tobacco company claims that its best-selling cigarettes contain at most 40mg of nicotine. This claim is tested at the 1% significance level by using the result of 15 randomly selected cigarettes. The mean was 42.6mg and the standard deviation was 3.7mg. Evidence suggests that nicotine is normally distributed. Information from a computer output of the hypothesis test is listed. Sample mean = 42.6 Significant level = 0.01 Sample Standard Deviation = 3.7 P-Value = 0.008

13. Procedure 1.Hypothesis 2.Decide if two-tailed test and find d.f. 3.Find critical value from table F 4.Find test value 5.Make a decision 6.Draw a conclusion/Summary

14. Decision for t test When test value is greater than critical value, we reject the null hypothesis.

16. Solution to Examples Solutions to both examples are scanned in a pdf and can be found on the course website titled: “hypothesis testing 2.solutions.pdf”

17. What you need tomorrow? Bring your own z and t table….I will not provide you one and you may not share with the person next to you Calculator if you choose You must have memorized the formula to get the test values