# 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 ?

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... 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 < ...