ECON 2500 Lecture 8: AP ECON 2500 F16 Session 8b

• School: York University
• Department: Economics
• Course: ECON 2500
• Professor: davidlee

Document Summary

Ap econ 2500 f2012 session 8b: nov 2, 7 (and 9) Tests of significance: use and abuse of tests, power and inference as a decision. Four steps of tests of significance: state the null and alternative hypotheses, calculate the value of the test statistic, find the p-value for the observed data, state a conclusion. A matched pairs study was performed on a sample of workers, and each worker"s satisfaction was assessed after working in each setting. The response variable is the difference in satisfaction scores, self-paced minus machine-paced. The null hypothesis is no average difference in scores in the population of assembly-line workers, while the alternative hypothesis (the one we"d like to prove true) is that, on average, Ha: 0 there is a difference in scores in the population of assembly workers. H0: = 0: suppose job satisfaction scores follow a normal distribution with standard deviation = 60. Data from 18 workers gave a sample mean score of 17.