The Next Questions Are Based on the Following Information

question 160

Essay

The Next Questions Are Based On The Following Information:
A company selling new econometrics computer software advertises that firms using this software obtain,on average during the first year,a yield of at least 10% on their initial investments.A random sample of 10 of the franchises that used the software produced the following yields for the first year of operation: 9.4,11.1,10.4,10.5,11.2,8.2,8.5,4.0,8.8,and 6.1.Assume that population yields are normally distributed.
-On the basis of a random sample the null hypothesis: H₀ : μ ≤ μ₀ is tested against the alternative: H₁ : μ > μ₀ and the null hypothesis is not rejected at the 10% significance level.Does this necessarily imply that μ₀ is contained in the 90% confidence interval for μ?

---

Definitions:

Decision Maker

An individual or group responsible for making choices after considering the consequences of various actions.

Irrational

Behavior or thoughts not based on logical reasoning, clear thinking, or aligned with factual evidence.

Economic Models

Simplified frameworks used to illustrate economic processes or theories through mathematical equations or diagrams.

Rationally

Acting based on reason or logic, typically in a way that maximizes self-interest or advantage within certain constraints or information.