confidence interval

2009-12-03 7:55 am
We have created a 95% confidence interval for u with the result (10, 15). What decision will we make if we test H0 : u = 16 versus H1 : u is not equal to 16 at
a =0.10 ?

a) Reject H0 in favor of H1
b) Accept H0 in favor of H1
c) Fall to reject H0 in favor of H1
d) We cennot tell what our decision will be from the information given

Which one of the above is the answer ?

In addition, a company that manufactures designer jeans is contemplating whether to increase its advertising budget by $1 million for next year. If the expanded advertising campaign is successful, the company expects sales to increase by $1.6 million next year. If the advertising campaign falls, the company expects
sales to increase by only $400,000 next year. If the advertising budget is not
increased, the company expects sales to increase by $200,000. Identify the
actions in this decision-making problem.

a) Two choices: (1) increase the budget and (2) do not increase the budget
b) Two possibilities: (1) campaign is successful and (2) campaign is not
successful
c) Four consequences resulting from the Increase/Do not Increase and
Successful/Not Successful combinations
d) The increase in sales dollars next year

Which one of the above is the answer ?

回答 (1)

2009-12-03 9:18 pm
✔ 最佳答案
Q1 As a =0.10 means we create a 90% confidence interval for u. Since the 95% confidence interval for u is (10, 15) and 90% < 95%, the 90% confidence interval should be contained in (10,15). So, the answer is A (Reject H0 in favor of H1).
Q2 action=decision by the designer => A (Two choices: (1) increase the budget and (2) do not increase the budget).


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