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1) Hypothesis Test – Mean A roofing company claims that their roofs will last for 35 years before they need replacement, with a standard deviation of 4 years. Angie’s List says they last less time. You sample 40 roofs and find they last a mean of 32 years. Using a level of significance of 5% do you agree with the roofing company? Or is the life shorter? Step I Ho : Ha : Step II a) Sampling distribution of the mean is normally distributed b) Since μ = ____ then µx = _____ c) x =  .= _____ √n Step III Decision Rule a) Directional or Non-Directional? _______ b) 1TT or 2TT? _________ c) Level of Significance, α = ____ d) Critical z-score(s) = ______________ e) Critical value(s) = ______________ f) We will reject Ho if ____________________ Step IV _ Analyze sample data and determine test statistic: x = _____ _ Determine if x satisfies the decision rule: Step V ___ Reject H0 or ___ Cannot Reject H0 Conclusion: _________________________________________________________________________ ___________________________________________ .   2) Hypothesis Test – Proportion A psychologist claims that 20% of Americans have some form of PTSD. A newspaper says this is too low, more than 20% have PTSD. You take a sample of 420 Americans and find that 90 have PTSD. Using a 1% level of significance, can you confirm the newspaper’s claim? Step I Ho : Ha : Step II a) Sampling distribution of the proportion is normally distributed b) Since p = ____ then μp = _____ c) p = p * q = _____ n Step III a) Directional or Non-Directional? _________ b) 1TT or 2TT? __________ c) Level of Significance, α = ____ d) Critical z-score(s) = ____________ e) Critical value(s) = _____________ f) We will reject Ho if _____________________ Step IV Analyze sample data and calculate test statistic: p = _____ Determine if p satisfies the decision rule: Step V ___ Reject H0 or ___ Cannot Reject H0 Conclusion: _________________________________________________________________________ ___________________________________________ .   3) Chi Squared Does enjoyment of the beach depend on hair color? Use a level of significance of 5%. Like Beach Hate Beach Don’t Know Total Blonde 25 15 40 80 Brown 35 12 20 67 Red 30 10 13 53 Total 90 3

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