ECON 216: Statistics for Business and Economics University of San Diego Professo
ID: 3314529 • Letter: E
Question
ECON 216: Statistics for Business and Economics University of San Diego Professor Alison Sauche School of Business Quiz: Two Sample Hypothesis Testing You work efficacy of a new promotion the Prime Vidco team has be in the Amazon Prime Video Analytics Division. The director of the division has asked you to evaluate the en running. The director wants to test to see whether the was successfai increasing has been effcctive in increasing premiurn downloads. In order to answer her question you gather a random sample of 100 members before and after the promotion to see if the promotion You find the following: the average number of downloads before the promotion was 15 and the average number of people upgrading their memberships to a Prime membership after the promotion is 20. The sample standard deviation of 4. 1. Provide the null and alternative hypotheses 2 Carry out the hypothesis test at the 5% level of significance using the critical value approach. You must provide the t-stat, the t-critical value and the decision rule in addition to your conclusion 1.5 level of sign,ficance using the p-value approach. Suppose the p-value Carry out the hypothesis test at the 5% is 0.051. 3, 2.5 4 Carry out the hypothesis test at the 5% level of significance using the confidence interval approach. .", reject b/c /e tht ,20 6 -le 5.7120 theSume Bonus They shoud be the Se be cause t cy are ForExplanation / Answer
1.
H0: mu <= 15
H1: mu > 15
2.
Test statistics, t = (20 - 15)/(4/sqrt(100)) = 12.5
t-critical = 1.660 ( =T.INV(0.05,99)*-1)
As test statistics is greater than the critical value, we reject the null hypothesis
3.
As p-value(0.051) is greater than the significance level of 0.05, we failed to reject the null hypothesis.
4.
Reject null hypothesis as 15 does not lie in the CI
CI for 95% n 100 mean 20 t-value of 95% CI 1.9842 std. dev. 4 SE = std.dev./sqrt(n) 0.40000 ME = t*SE 0.79369 Lower Limit = Mean - ME 19.20631 Upper Limit = Mean + ME 20.79369 95% CI (19.2063 , 20.7937 )Related Questions
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