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Hypothesis testing for population mean:
You are hired by the governor to study whether a tax on liquor has decreased average liquor consumption in your state. You are able to obtain, for a sample of individuals selected at random, the difference in liquor consumption (in ounces) for the years before and after the tax. For person i who is sampled randomly from the population, Yi denotes the change in liquor consumption. Treat these as a random sample from a Normal (µ, σ2) distribution.
a) The null hypothesis is that there was no change in average liquor consumption. State this formally in terms of µ.
b) The alternative is that there was a decline in liquor consumption; state the alternative in terms of µ.
c) Would you say that the estimated fall in consumption is large in magnitude? Comment on the practical versus statistical significance of this estimate.
d) What has been implicitly assumed in your analysis about other determinants of liquor consumption over the two-year period in order to infer causality from the tax change to liquor consumption?
Which of the following statements is consistent with the scatterplot
Could mud-wrestling be the cause of a rash contracted by University of Washington students in the spring of 1992? Two physicians at the University of Washington health center wondered this when one male and six female students complained of rashes..
It is better to use the median rather than the mean for a distribution when:
Examine the relationship between final grade and the reported hours per week each student said they studied for the course. Do we have evidence that females are being discriminated against?
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At.02 significance level is it sensible to conclude that mean number of shoes sold at mall stores is larger than at outlet stores?
If the mean times for both George and Julia are actually the same, what is the probability that George will be let go?
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What is the likelihood the sample mean is greater than $22.50 but less than $25.00?
Make use of normal probability distribution features of EXCEL to help determine the probability.
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