Supplementary Exercise 6.108 of IPS7e ------------------------------------- Brief solution only. Minitab commands and output: MTB > OneZ 100 483; SUBC> Sigma 100; SUBC> Test 480; SUBC> Confidence 95.0; SUBC> Alternative 1. One-Sample Z Test of mu = 480 vs > 480 The assumed standard deviation = 100 N Mean SE Mean 95% Lower Bound Z P 100 483.0 10.0 466.6 0.30 0.382 MTB > OneZ 1000 483; SUBC> Sigma 100; SUBC> Test 480; SUBC> Confidence 95.0; SUBC> Alternative 1. One-Sample Z Test of mu = 480 vs > 480 The assumed standard deviation = 100 N Mean SE Mean 95% Lower Bound Z P 1000 483.00 3.16 477.80 0.95 0.171 MTB > OneZ 10000 483; SUBC> Sigma 100; SUBC> Test 480; SUBC> Confidence 95.0; SUBC> Alternative 1. One-Sample Z Test of mu = 480 vs > 480 The assumed standard deviation = 100 N Mean SE Mean 95% Lower Bound Z P 10000 483.00 1.00 481.36 3.00 0.001 Comments: --------- In the first two scenarios, the z-statistic is non-significant, but in the third scenario it becomes strongly significant. The z-statistics go up with a factor of sqrt(10)=3.16 for every factor 10 increase in the sample size.