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Q: Business Statistics ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: Business Statistics
Category: Science > Math
Asked by: wta2k-ga
List Price: $12.50
Posted: 02 Apr 2003 18:36 PST
Expires: 02 May 2003 19:36 PDT
Question ID: 185193
10.23 
For each of the following tests and Z values, determine the-p-value
for the test:
a.	Right-tail test and Z = 1.54
b.	Left-tail test and Z = -1.03
c.	Two-tail test and Z = -1.83

Hi, I need clear step by step work answers. However, not long
explanations or professional answers. Thank you very much.

Request for Question Clarification by juggler-ga on 02 Apr 2003 19:21 PST
Hi.

Are we to assume "normal distribution"? 
If so, is it okay to use a "normal table" to calculate this?
Answer  
Subject: Re: Business Statistics
Answered By: juggler-ga on 02 Apr 2003 20:32 PST
Rated:5 out of 5 stars
 
Hello.

Okay, I'm going to assume normal distribution. If that's not okay,
please use the "request clarification" feature to let me know.

To calculate the p-values, one must consult a standard normal table,
such as this one from San Jose State University.
http://www.sjsu.edu/faculty/gerstman/EpiInfo/z-table.htm

a. Right-tail test and Z = 1.54 .  
When we look up 1.54 in the normal table, we see a value of 0.9382 ,
this value is equal to the entire area under the normal curve to the
left of 1.54. The p-value for the right tail test is the area to the
right of 1.54.  Thus, calculating the area to the right of 1.54 is
simply a matter of subtracting 0.9382 from 1.
p-value = 1 - 0.9382 = 0.0618

b. Left-tail test and Z = -1.03 . 
When we look up the absolute value of -1.03 (i.e., 1.03) in the normal
table, we see a value of 0.8485 , this value is equal to the entire
area under the normal curve to the left of 1.03. The p-value for the
left tail test is the area to the left of -1.03 (which is also equal
to the area to right of 1.03 because the normal curve is symetrical. 
Thus, calculating the area to the left of -1.03 is simply a matter of
subtracting 0.8485 from 1.
p-value = 1 - 0.8485  = 0.1515

c. Two-tail test and Z = -1.83 .
When we look up the absolute value of -1.83 (i.e., 1.83) in the normal
table, we see a value of 0.9664 , this value is equal to the entire
area under the normal curve to the left of 1.83. The p-value for the
two tail test is the area to the left of -1.83, plus the area to the
right of 1.83.  Thus, calculating the area to the right of 1.83 and
the left of -1.83 is simply a matter of subtracting 0.9664 from 1, and
then multiplying by 2.
p-value = 2 * (1 - 0.9664) = 2  * (0.0336) = 0.0672



sources for the concepts discussed:

"In a left-tail test, the P-value is the area under the normal curve
to the left of x: had we chosen the significance level p so that zp =
x, we would have rejected the null hypothesis, but we would not have
rejected it for any smaller value of p, because for all smaller values
of p, xp < x. Similarly, for a right-tail z test, the P-value is the
area under the normal curve to the right of x. For a two-tail z test,
the P-value is the sum of the area under the normal curve to the left
of -|x| and the area under the normal curve to the right of |x|."
Source:  "Approximate Hypothesis Tests: the z-test and the t-test,"
hosted by Berkeley.edu:
http://stat-www.berkeley.edu/users/stark/SticiGui/Text/ch22.htm

"Lesson 19 - Part II: Testing Hypotheses," hosted by southwestern.edu
http://www.southwestern.edu/~owensp/Statintro/Lectures/19b/19b.htm

search strategy: "left tail", "right tail", "two tail"

I hope this helps.
wta2k-ga rated this answer:5 out of 5 stars and gave an additional tip of: $1.19
Great!! Thanks a lot!!

Comments  
Subject: Re: Business Statistics
From: juggler-ga on 04 Apr 2003 11:16 PST
 
Thanks for the tip.
-juggler

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