Preview

Statistics Analysis

Good Essays
Open Document
Open Document
548 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Statistics Analysis
Hypothesis:
Ho: P = .10 (Mr. Plex and consortium will seriously consider settlement)
H1: P < .10 (Mr. Plex and consortium will rigorously defend any lawsuit by Tommy)
Analysis:
For this case, we use 0.01 as the significance level. In a hypothesis test, a Type I Error occurs when the null hypothesis is rejected when it is in fact true. That means if the consortium decides to consider a settlement when greater than 10% of the patrons resented ads/commercials is true and we reject the null hypothesis when in fact null hypothesis is correct, then we will make a type I error. A Type II Error occurs if Ha is true and we accept Ho when it is false. That means if the consortium will defend any lawsuit by tommy when 10% or less does not like ads/commercials is true and we accept null hypothesis when it is false, then we will make a type II error.

Analysis work for the first survey (270 patrons)
We conducted hypothesis testing with a sample size of 270 people, 20 people agree with Tommy, and resent the commercials before the movie.
P = 10% (percentage for which Mr. Plex and consortium considers to determine to settle with Tommy)
P^ = 20/270 = 0.074 = 7.4% (percentage of sample of those who agree with Tommy and resented the ads) n = 270 (Patrons); P= 10% = 0.1; P^ = 0.074; q = 1- 0.1=0.9
Since:
Therefore, Z = (0.074 - .10) / (√(0.10 (1 - .10) / 270))
Z = -1.424
We use a significant level of α=. 01 for a one-tailed hypothesis:
P-value = 0.0772
The result is not significant at p < .01
Since .0772 is greater than the significance level of 0.01, we accept the null hypothesis.
Analysis work for the second survey (583 patrons)
P = 10% = 0.1; P^ = 37 / 583 = 0.063; n = 583 (patrons);
Z = ((0.063 – .10) / (√(.10(1 - .10) / 583) ) Z = -2.978
We use a significant level of α=. 01 for a one-tailed hypothesis:
P-value = 0.001451
The result is significant at p < 0.01
For the second survey of a sample of 583 patrons with 37 agreeing with Tommy, we get 0.001451, which is less

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Adm2304 Assignment 2

    • 747 Words
    • 3 Pages

    (a) Test at the .05 level of significance whether the data constitute evidence of a…

    • 747 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    From this case, there are two types of errors, which the consortium can make. A Type I Error is referred to as a “false positive.” A Type I error would be made when the null hypothesis is rejected when it should be accepted. This error may occur if the consortium defends any lawsuit against them if they are using 6% (6/100) as their surveying result. The results of the sample size of 100 people indicate that the percentage range is from 1.35% to 10.65%. The test results can be higher than 10%, but actually it is lower. Therefore, if the consortium defends any lawsuit against them it is possible that a Type I Error can be made. The second type of error is a Type II Error, which is also known as “false negative.” A Type II error would be made when the alternative hypothesis is rejected when it should be accepted. For this to occur, the consortium must make a decision to settle the case when the survey result shows a lower percentage than 10% but in reality it is actually higher than 10%.…

    • 486 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    QNT351 Week5 MyStatsLab

    • 2853 Words
    • 9 Pages

    B. The level of significance, α, is the probability of committing a Type II error, rejecting the null hypothesis when it is, in fact, true…

    • 2853 Words
    • 9 Pages
    Satisfactory Essays
  • Good Essays

    Stat 200 Exam 2

    • 5054 Words
    • 21 Pages

    Feedback: This level of significance, commonly set to α equal to 0.05, is used to set the cut-off as the maximum probability a researcher would use in order to reject a true null hypothesis.…

    • 5054 Words
    • 21 Pages
    Good Essays
  • Satisfactory Essays

    revised schedule

    • 310 Words
    • 2 Pages

    ((20 * (40 * 30% - $0.74)) / (1 + 0.0194) + (16 * ($30 * 30% - $0.74)) / pow(1 + 0.0194,2) + (12 * (35 * 30% - $0.74)) / pow(1 + 0.0194,3) + (8 * (25 * 30% - $0.74)) / pow(1 + 0.0194,4) + (4 * (20 * 30% - $0.74)) / pow(1 + 0.0194,5) + (2 * (20 * 30% - $0.74)) / pow(1 + 0.0194,6)) / 50 = $10.74 [+/- $0.32]…

    • 310 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Marriott Wacc Case Study

    • 784 Words
    • 4 Pages

    Lodging’s R[E] = Rf + β[E] * (Rp) = 0.0895 + 1.23 * 0.0743 = 18.09%…

    • 784 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The hypothesis is supported due to the T-test value. "Determine the probability that your results are valid at the 0.05 level by comparing the number listed in the 0.05 column on the line that corresponds with your degrees of freedom with your t-test value. If the number is less than your t-test value then you are 95% confident that your data or your results are due to the experiment." The number in said column was 2.015, the degrees of freedom for this experiment was 5. Possible sources of error for this experiment are the…

    • 553 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    FV = 1000, n = 4, PMT = 100, i = 12, PV = 939.25; $100 / $939.25 = 10.65%.…

    • 10359 Words
    • 42 Pages
    Satisfactory Essays
  • Good Essays

    1 mon(50%) | | 25,000 | 30,000 | 32,500 | 36,000 | 31,500 | 29,500 |…

    • 534 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Brick N Mortar vs Online

    • 8272 Words
    • 34 Pages

    They represent a 28 percent response from 2,500 households that received the survey. Extensive non-response analysis ruled out serious bias in the…

    • 8272 Words
    • 34 Pages
    Powerful Essays
  • Satisfactory Essays

    Assignment 1 Answer

    • 281 Words
    • 2 Pages

    P = 1001+0.05 + 1001+0.052 + 100(1+0.05)3 + 100(1+0.05)4 + 40(1+0.05)5 + 400(1+0.05)5 = $699.35…

    • 281 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    A company that manufactures travel goods is particularly concerned that the mean weight of the roll-on cabin bags should not exceed 3 kg as many airlines limit the weight of carry-on luggage on their planes to 7 kg. Past experience allows the assumption that the std. dev = 0.03 kg. A sample of 50 cabin bags is selected and the sample mean is 3.009 kg. Using a 0.05 significance, conduct a hypothesis test to determine if the population mean weight of the cabin bags is greater than 3kg?…

    • 1354 Words
    • 7 Pages
    Satisfactory Essays
  • Powerful Essays

    The cost of capital wacc

    • 1867 Words
    • 9 Pages

    = [0.3  7.50%  (1 – 0.35)] + [0.2  10%] + [0.5  12.0%] = 9.46%…

    • 1867 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Mutual Fund Education

    • 1498 Words
    • 6 Pages

    r 0.15, 0.10, 0.08 k 0.10 EPS Rs 10 DPS 40% (0.15 / 0.1) P (4 / 0.1) (10 4) 0.1 (0.10 / 0.1) P (4 / 0.1) (10…

    • 1498 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Business Modelling

    • 20806 Words
    • 84 Pages

    Introduction Hypothesis Testing Two Tailed Tests Hypothesis Tests of the Population Proportion (p) Confidence Intervals Chi Squared Test Summary…

    • 20806 Words
    • 84 Pages
    Powerful Essays