Therefore, the claim of this hypothetical weight loss

Assignment Help Financial Management
Reference no: EM13978239

Suppose a new weight loss program was sponsored by the local health and fitness club in a small town. The program claims to make people lose more than five pounds in a month. Twelve participants were selected and their weights were recorded. After a month of the program their weights were recorded again. It was found that many participants lost some weight. But there was variation. Some lost more and some lost less, and some did not lose any pound at all. The measurements were as follows:Obs Before After

1 ...........217 202.5
2 ...........188 178
3 ...........225 210
4 ...........168 157
5 ...........178 169
6 ...........182 180
7 ...........174.5 163.5
8 ...........161.5 153
9 ...........177.5 178
10 .........358.5 336
11 .........181 174
12 .........210 197.5

Test the claim of the program sponsors at reasonable levels of significance. 
We can use calculator to find the paired differences then find its mean and standard deviation, then standard error of the sample mean difference, and then perform the t-test using t- table.
I will give the computer result here. Show result using calculator, formula and t-table.
Hypothesis Test: Paired Observations
5.0000 hypothesized value 
201.7500 mean before 
191.5417 mean after 
10.2083 mean difference (before - after)
5.9979 std. dev. 
1.7315 std. error 
12 n 
11 df 
3.01 t 
.0060 p-value (one-tailed, upper)
The p-value shows that the Null hypothesis that the weight loss is less than or equal to five pounds is strongly rejected even at 1% significance level. Therefore, the claim of this hypothetical weight loss programs has strong support from this sample.

Reference no: EM13978239

Questions Cloud

The options intrinsic value and time value : The premium for a March 2016 1285 gold futures call option is 23.oo/oz when the march 2016 gold futures market price is 1299.00/oz the options intrinsic value ? and its time value ?
How the internet may affect public opinion : Write a paper that summarizes how the Internet may affect public opinion in a positive or negative way with regards to brand reputation
What value would cosmologist estimate for age of universe : A cosmologist measures the value of the Hubble constant to be H=27.9 km/s/e6 light years. The reciprocal of H (1/H) provides an estimate of the age of the universe. What value would this cosmologist estimate for the age of the universe? Express yo..
Predict the proft-maximizing price and quantity of services : Given the following demand and cost conditions for a monopolistic medical practice, predict the proft-maximizing price and quantity of services utilized
Therefore, the claim of this hypothetical weight loss : Therefore, the claim of this hypothetical weight loss programs has strong support from this sample.
Economic history since the industrial revolution : Economic history since the industrial revolution [in the United States] strongly suggests that technical learning, not the process of perfect competition, drives growth over time” explain why perfect competition is not conducive to innovation, i.e., ..
Why is it easier now to get the nail into the wood : It is hard, so then you get a heavy piece of iron and put the wood on top of that. You hold the iron and start pounding. Why is it easier now to get the nail into the wood?
Deductions will also be made for grammatical errors. : Deductions will also be made for grammatical errors. Read your document out loud and see if anything sounds funny when spoken. That is one trick that I use myself sometimes.
What should be done about the 350000 that has been earned : As a member of the external auditing team, do you agree with Jex's reasoning. If you think that an adjustment needs to be made, what journal entry would you propose. What should be done about the $350,000 that has been earned this year even though th..

Reviews

Write a Review

Financial Management Questions & Answers

  Purchased the stock without margin

In the previous problem, suppose you sell the stock at a price of $62. What is your return? What would your return have been had you purchased the stock without margin? What if the stock price is $46 when you sell the stock?

  Comment on the liquidity and profitability performance

Analyse and comment on the liquidity and profitability performance of the selected company from the point of view of management, based on the financial statements for years 2008 to 2010.

  Direct cost of bankruptcy

Which of the following is not a direct cost of bankruptcy?

  What is the annual interest rate for this account

Use the formula for continuous compounding A = Pert, where A is the account balance after t years for the principal P and annual interest rate r (in decimal form). A deposit of $7000 is placed in a savings account for 2 years. The interest is compoun..

  The real rate of interest and the inflation rate

You are considering investing money in Treasury bills and wondering what the real risk-free rate of interest is. Currently, Treasury bills are yielding 4.5% and the future inflation rate is expected to be 2.1% per year. Ignoring the cross product bet..

  According to the liquidity premium theory of interest rates

According to the liquidity premium theory of interest rates, long-term spot rates are higher than the average of current and expected future short-term rates. Investors are indifferent between different maturities if the long-term spot rates are equa..

  Define the experiment the clerk conducted

A study examined waiting times in the X-ray department for a hospital in Jacksonville, Florida. Define the experiment the clerk conducted. List the experimental outcomes. Assign probabilities to the experimental outcomes.

  Compute the equivalent units of production-material costs

Process costing Problem Spectre Chemicals produces Zaloff in a two department process. Information on the two departments for March and April, 2011 are as follows: March 2011: Compute the Equivalent Units of Production, Material costs, and Conversion..

  Conduct sensitivity analysis to determine sensitivity of NPV

Use Excel formulas to do all the calculations, that is, do not calculate anything on a calculator and just input the answer in your file. Develop a spreadsheet model, and use it to find the project’s NPV, IRR, and payback. Conduct a sensitivity analy..

  Total cost of college education-what is the annual rate

Assume the total cost of a college education will be $370,000 when your child enters college in 18 years. You presently have $60,000 to invest. What is the annual rate%?

  What will portfolios new beta be after these transactions

You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another..

  What are the potential benefits for the firm from using fdi

Motives for FDI. Starter Ltd (UK) produces sports- wear that is licensed by professional sports teams. It recently decided to expand in Europe. What are the potential benefits for this firm from using FDI?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd