Freiya J.

asked • 02/26/16

INFERENTIAL STATISTICS - please help me. thanks!

D.G Co. claims that the average gross sales of their products in all their branches is 37 million/ week with a standard deviation of 6 million. A certain researcher found out that the average gross sales from the 32 branches of the same company is 34.8 million. Are the 32 branches significantly different from the rest? Use = 5% 

1. Perform the 5 steps in testing hypothesis with two-tailed or two- sided tests.
2. Perform the 5 steps in testing hypothesis with one tailed or one - sided tests.
And N= 45 branches. (all other given are the same)
Tabular or critical values of Zt
 
                                               Alpha error                               Alpha error
                                               α = 1%                                      α = 5%(0.05)
 
On-tailed or one-sided test         + 2.33                                       + 1.645
 
Two-tailed or two sided test        +2.575                                      +1.96
 
Does the question say there are a total of 45 branches in the company? YES

Is the question actually asking if the 32 surveyed branches are different from the remaining 13? YES

1 Expert Answer

By:

Arnold F. answered • 02/27/16

Tutor
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College Professor & Expert Tutor In Statistics and Calculus

Freiya J.

Does the question say there are a total of 45 branches in the company? Yes Sir

Is the question actually asking if the 32 surveyed branches are different from the remaining 13? Yes Sir
 
Please help me, i am confused. thanks a lot 
Report

02/28/16

Arnold F.

This is  a bit of a confusing question.
 
Usually a claim is made about a (large) population and then a sample is taken to test the claim.
 
Here the population is of size and the sample of size 32 (almost the whole population) is taken.
 
To answer the question exactly as asked we would need to calculate the average and standard deviation of the 13 remaining.
 
 
That being said a "calculation" can be made using the assumption that the question is really asking "Does the average of 34.8 million indicate the claim of 37 million is incorrect?"
 
Null hypothesis would be claim is accurate
Alternate hypothesis is claim is not accurate
 
Based on the wording of the question it would be a two-tailed test with alpha=.05 so the critical z=1.96.
 
The test statistic for z would be z=(37-34.8) / [6/sqroot(32)].
 
If this value is greater than 1.96 then reject null hypothesis.
 
For a one tailed test the critical value would be 1.645.
 
 
Does this make sense?
 
 
 
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02/28/16

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