Calculations for hypothesis testing problems

The Employment and Training Administration reported the U.S. mean unemployment insurance benefit of $238 per week (The World Almanac 2003). A researcher in the state of Virginia anticipated that sample data would show evidence that the mean weekly unemployment insurance benefit in Virginia was below the national level. For a sample of 136 individuals, the sample mean weekly unemployment insurance benefit was $229 with a sample standard deviation of $70.

a) In proper notation, state the hypotheses of this test.

b) What is the rejection rule at the default value of α?

c) Show your calculation of the test statistic. ______ = ______________

d) What is the conclusion about the issue in question ?

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/statistics/hypothesis-testing/calculations-for-hypothesis-testing-problems-7fnv

Solution Preview

... notation, state the hypotheses of this test.

b) What is the rejection rule at the default value of α?

c) Show your calculation of the test statistic. ______ = ______________

d) What is the conclusion about the issue in question ?
Answer
a) In proper notation, state the hypotheses of this test.
The null hypothesis tested is
H0: Mean unemployment insurance benefit per week =$ 238. (µ = 238)
The alternative hypothesis is
H1: Mean unemployment insurance benefit per week <$ 238. (µ < ...