The average daily volume of a computer stock in 2011 was p = 35.1 million shares, according to a reliable source. A stock analyst believes that the stock volume in 2014 is different from the 2011 level. Based on a random sample of 40 trading days in 2014, he finds the sample mean to be 30.9 million shares, with a standard deviation of s = 11.8 million shares. Test the hypotheses by constructing a 95% confidence interval. Complete parts (a) through (c) below. A. State the hypotheses for the test. B. Construct a 95% confidence interval about the sample mean of stocks traded in 2014.​C. Determine if the researcher

Respuesta :

Answer:

a)Null hypothesis:[tex]\mu=35.1[/tex]

Alternative hypothesis:[tex]\mu \neq 35.1[/tex]

b) The 95% confidence interval would be given by (27.131;34.669)

c) Since the confidence interval contains the value of interest 35.1 we don't have enough evidence to reject the null hypothesis at 5% of significance.

Step-by-step explanation:

Data given and notation

[tex]\bar X=30.9[/tex] represent the sample mean

s=11.8 represent the sample deviation

n=40 sample size

Confidence =0.95 or 95%

Part a

On this case the correct system of hypothesis would be:

Null hypothesis:[tex]\mu=35.1[/tex]

Alternative hypothesis:[tex]\mu \neq 35.1[/tex]

Part b

The confidence interval for the mean is given by the following formula:  

[tex]\bar X \pm t_{\alpha/2}\frac{s}{\sqrt{n}}[/tex]   (1)  

In order to calculate the critical value [tex]t_{\alpha/2}[/tex] we need to find first the degrees of freedom, given by:  

[tex]df=n-1=40-1=39[/tex]  

Since the Confidence is 0.95 or 95%, the value of [tex]\alpha=0.05[/tex] and [tex]\alpha/2 =0.025[/tex], and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-T.INV(0.025,39)".And we see that [tex]t_{\alpha/2}=2.02[/tex]  

Now we have everything in order to replace into formula (1):  

[tex]30.9-2.02\frac{11.8}{\sqrt{40}}=27.131[/tex]    

[tex]30.9-2.02\frac{11.8}{\sqrt{40}}=34.669[/tex]    

So on this case the 95% confidence interval would be given by (27.131;34.669)

Part c

​(c) Determine if the researcher  will reject the null hypothesis.

Since the confidence interval contains the value of interest 35.1 we don't have enough evidence to reject the null hypothesis at 5% of significance.