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Solution: Using Confidence Intervals to Test Hypotheses Test
Chapter 6, Problem 30AYU(choose chapter or problem)
Using Confidence Intervals to Test Hypotheses Test the hypotheses in Problem 26 by constructing a 95% confidence interval.
(a) Based on the histogram and boxplot shown (from StatCrunch), why is a large sample necessary to conduct a hypothesis test about the mean?
(b) Does the evidence suggest that the volume of Google stock has changed since 2007? Use the α = 0.05 level of significance.
Questions & Answers
QUESTION:
Using Confidence Intervals to Test Hypotheses Test the hypotheses in Problem 26 by constructing a 95% confidence interval.
(a) Based on the histogram and boxplot shown (from StatCrunch), why is a large sample necessary to conduct a hypothesis test about the mean?
(b) Does the evidence suggest that the volume of Google stock has changed since 2007? Use the α = 0.05 level of significance.
ANSWER:Step 1 of 4
Using Confidence Intervals to Test Hypotheses Test the hypotheses in Problem by constructing a 95% confidence interval.
Given, In 2007, the mean daily volume in Google stock was 5.44 million shares, according to Yahoo!Finance. A random sample of 35 trading days in 2010 resulted in a sample mean of 3.28 million shares with a standard deviation of 1.68 million shares.