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Understanding Business Statistics 1st edition Stacey Jones, Tim Bergquist, Ned Freed - Solutions

Suppose you are testing the following hypotheses: H0: μ = 3200 Ha: μ ≠ 3200 Sample size is 9. The sample mean is 3260 and the sample standard deviation is 120. The significance level is .10. Assume that the values in the population are normally distributed. a. Compute the sample test
According to the Centers for Disease Control and Prevention, average life expectancy in the United States has risen to 77.6 years (source: cnn.com). It has been suggested that residents in rural areas of the Southwest have a shorter life span than the general population. In a random sample of 250
Refer to Exercise 48. Suppose the sample size was 25 rather than 250. Assume the population distribution is approximately normal. Revise the test you set up and report your decision.
The competing hypotheses for a particular hypothesis test are as follows: H0: μ < 1100 Ha : > μ 1100 A random sample of size 64 is taken from the target population. The sample mean is 1125. Assume the population standard deviation is known to be 80. Based on the sample result, can we reject the
According to ePaynews.com, the average online retail transaction is $ 187 (epaynews.com/.) Suppose you take a random sample of 50 online transactions made through your company’s website and find that the average transaction amount in the sample is $ 195. The sample standard deviation is $ 36. Is
Refer to Exercise 50. Suppose the sample size was 15 rather than 50. Assume the population distribution is approximately normal. Revise the test you set up and report your decision.
A study in the Annals of Emergency Medicine found that for emergency room patients in California hospitals the average waiting time— the elapsed time from arrival until seeing a physician— was 56 minutes (source: acep.org). As part of your research at St. Luke’s Hospital in Los Angeles, you
Refer to Exercise 52. Suppose the sample size was 12 rather than 200. Revise the test you set up and report your decision. Assume the population distribution is approximately normal. In exercise A study in the Annals of Emergency Medicine found that for emergency room patients in California
Plexon Tire and Rubber Company claims that its Delton III tires have an average life of at least 50,000 miles. You take a random sample of 50 Delton III tires to test Plexon’s claim. The average life for the tires in your sample is 49,100 miles. Is this sufficient sample evidence to challenge
Advantage Manufacturing, a manufacturer of above ground portable swimming pools, claims that “the average family can assemble the Advantage Pool within one hour” (patiostore.com). In a telephone survey of 50 randomly selected Advantage Pool buyers, you find that the average assembly time
Judge Robert Smith is accused of being “soft on crime,” especially in cases involving white collar crimes like fraud and embezzlement. The judge has responded to the accusation by insisting that the average sentence he has handed out in such cases is more severe than that for any other judge in
A severe tornado recently touched down in Bryce County, Kansas. Government policy calls for emergency support if the average damage done to the population of all farms in the county exceeds $ 20,000. At the moment, the government is not at all convinced that this criterion has been met. To
A study by the National Institute on Media and the Family reported that American children, ages 2 17, spend, on average, 25 hours per week watching television (mediafamily.org). You believe that your community average is lower. To test your belief, you randomly select a sample of 60 children, ages
According to a study done by the Online Bookselling Center, the average delivery time for books purchased online and shipped via USPS first class mail is 3.65 days (onlinebookselling.net). Based on your experience, you believe the average delivery time is longer. You contact a random sample of 45
The competing hypotheses for a particular hypothesis test are as follows: H0: μ > 2000 Ha: μ < 2000 A random sample of size 100 is taken from the target population. The sample mean is 1955. Assume the population standard deviation is known to be 150.Based on the sample result, can we reject
Central Pharmaceuticals, Inc. claims to have a new medication for the common cold— a medication that reduces average recovery time to 80 hours or less. Independent Testing Labs is skeptical and has selected a sample of 50 cold sufferers to whom it administers the new medication. Average recovery
Refer to Exercise 54 (Plexon Tires). Use the p value approach to answer the following questions. In exercise Plexon Tire and Rubber Company claims that its Delton III tires have an average life of at least 50,000 miles. You take a random sample of 50 Delton III tires to test Plexon’s claim. The
A large number of rivets hold the wing of an Icarus 350 (a light aircraft model) to the fuselage. You are to conduct a spot check of the aircraft’s safety. Regulations require an average breaking strength of at least 8800 pounds for the rivets. You randomly select 100 rivets and check the
Felton School of Electronics claims that the average starting salary for its recent graduates is at least $ 38,000. You suspect the average is less and plan to contact a simple random sample of 50 of Felton graduates nationwide. To test Felton’s claim, you set up the competing hypotheses: H0: μ
Stickle Soft Drinks plans to purchase advertising time on the Tuesday night “America Sings” television series, but only if it can be shown that the average age of the show’s viewers is less than 30. A random sample of 200 viewers will be selected to test a null hypothesis stating that the
Arakawa Tomoko Inc. has instituted an inventory control policy that calls for severely reduced production if the average age of the units currently in inventory exceeds 120 days. Each month, the company takes a simple random sample of 50 units from its large population of inventoried items in order
Shed Wate Inc. claims that with its new weight control program, average weight loss over the full span of the program is at least 28 lbs. You suspect the average is lower and plan to take a sample of 60 Shed Wate customers to test the company’s claim. You will use Shed Wate’s claim as the null
If production workers are performing their jobs properly, boxes of powdered detergent produced by your company should contain, on average, 30 ounces of powder, no more and no less. You will periodically select a sample of 36 boxes of detergent and measure the contents. Set up the appropriate
Grandstand Sports has received a shipment of baseballs that must conform to an average diameter specification of 2.9 inches. Variation to either side of that average is cause for concern. You plan to measure a sample of 50 baseballs to evaluate the recent shipment.The sample mean diameter is 2.96
If it is in proper adjustment, the metal stamping machine at the Ockham Razor company produces carbon blades that, on average, are 18 mm in thickness, with a standard deviation of .5 mm. You take measurements on a random sample of 49 blades every hour in order to judge whether the machine continues
The competing hypotheses for a particular hypothesis test are as follows: H0: μ < 2500 Ha: μ < 2500 A random sample of size 36 is taken from the target population. The sample mean is 2525. Assume the population standard deviation is known to be 120. Based on the sample result, can we reject the
Your friend Fred claims that his average gym workout time is at least 150 minutes per day. You pick a random sample of 10 days and observe that on the days in the sample, Fred’s average workout time was 136 minutes. The standard deviation of workout times in the sample was 28 minutes. You plan to
Refer to Exercise 70. Suppose sample size was 50 days rather than 10 days. Show the proper hypothesis test and report your conclusion. In exercise Your friend Fred claims that his average gym workout time is at least 150 minutes per day. You pick a random sample of 10 days and observe that on the
David Ricardo of Iron Law, Inc. claims that he meets the company standard of spending an average of “no more than $ 8 a day” on business lunches. As company auditor, you take a random sample of 12 of David’s recent lunch receipts and find that the average lunch check for the sample was $
Refer to Exercise 72. Suppose sample size was 36 rather than 12. Show the test and report your decision. In exercise David Ricardo of Iron Law, Inc. claims that he meets the company standard of spending an average of “no more than $ 8 a day” on business lunches. As company auditor, you take a
As operations supervisor at an online customer service center, you are concerned about the average time that elapses between the receipt of a customer question or complaint and the issuance of a response. The company prides itself on an average response time of no more than 36 hours. You take a
Jill Kindler, your top salesperson, claims that she averages more than 25 sales calls per day. From her daily log you randomly select a sample of five days with the following results:Use this data to test a skeptical null hypothesis that Jill averages no more than 25 sales calls per day. Use a
You have set up a hypothesis test to determine if the plywood sheets being produced by your mill meet company standards. For each large batch of sheets, you select a sample of six sheets and count the number of surface flaws in each. You then compute the average number of flaws in the sample and
From a recent production run of compact fluorescent (CF) bulbs, you select a random sample of 10 bulbs. Using an accelerated bulb life simulation, you find that the average life for the bulbs in the sample is 2440 hours, with a sample standard deviation of 60 hours. Use these sample results to
Lucas Lopez is auditing ABC Corporation’s accounts receivable. There are 5000 accounts in all. ABC shows a total book value of $ 2,840,000 for accounts receivable. Lucas takes a simple random sample of 100 of the 5000 accounts and finds that the average amount receivable in the sample is $
Suppose we want to test the following hypotheses regarding a particular population mean: H0: μ < 1500 hours Ha: μ > 1500 hours Assume sample size is 100 and that the population standard deviation is 50. The significance level is 5%. Build the appropriate test and compute the probability
According to researchers at Carnegie Mellon University, the average life span of a computer hard drive is 600,000 hours, or 3.1 years (source: science. newsfactor.com). Suppose a particular company claims that the life span of its hard drives is longer, offering as proof a study based on a sample
Suppose we want to test the following hypotheses regarding a particular population mean: H0: μ > 500 feet Ha: μ < 500 feet Assume sample size is 64 and that the population standard deviation is 80. Use a significance level of .10. Build the appropriate test and compute the probability that
Career Consultants is conducting a study of the average number of applications received by employers who place job announcements in the Wall Street Journal. The Journal recently reported that the average number of applications (μ) is more than 150 per announcement. You set up a hypothesis test to
Central Command (CentCom) intends to evaluate the average time it takes new Marine trainees to successfully complete a proposed preliminary physical fitness test. CentCom wants the average time (μ) not to exceed 800 minutes. You plan to set up a hypothesis test to test the following hypotheses H0:
Refer to exercise 81, where you had set up a test to test the competing positions H0: μ < 150 applications Ha: μ > 150 applications. Suppose now you want to set up a new test for this situation. In this new test, you plan to use a significance level of .01— that is, you want no more than
Refer to exercise 82, where you had set up a test to test the competing positions H0: μ > 800 minutes Ha: μ < 800 minutes Suppose now you want to set up a new test for this situation. In this new test, you plan to use a significance level of .05— that is, you want no more than a 5% chance
The Lundberg Survey, which reports gas prices at gas stations nationwide, reported recently that the average price for regular grade gasoline in the US was $ 3.42 per gallon (source: moneynews.com). You believe that the current average price for the population of stations in your city is higher. To
You want to set up a test for the following hypotheses: H0: π > .4 Ha: π < .4 You will have a random sample of 200 population members to make your decision. a. Suppose the sample proportion turns out to be .365. Compute the sample test statistic, z stat. b. Using a significance
In past years at least 20% of the students at State U. chose to pursue public service careers after graduation. For an editorial piece on declining student commitment to public service, the school newspaper surveyed a simple random sample of 100 currently enrolled students and found that only 12 of
Last year, 45% of the players using online game site ABCya.com were from outside the US. The site is planning to conduct a survey of 200 randomly selected online customers in an effort to determine whether that percentage has changed. Your job is to set up an appropriate two tailed hypothesis test.
It has been suggested that no more than a quarter of Americans who invest in stocks have even a basic knowledge of investing. To investigate, Money Magazine and the Vanguard Group conducted a study in which 1555 investors were selected from across the United States and given a simple quiz on
In its Audit of Computerized Criminal History, the Florida Department of Law Enforcement (FDLE) periodically reviews the accuracy and completeness of its criminal history database. The database contains thousands of records. The FBI/Bureau of Justice Quality Standards require that at least 95% of
MarketingExperiments.com has conducted studies to determine the percentage of online orders that are started by customers and then abandoned for various reasons— poorly designed forms, loss of customer confidence in the security of the transaction, overly personal questions, etc. For one
The large shipments of “Mix RW” balloons sold by Thibodaux Wholesale Party Supply are supposed to contain equal numbers of red and white balloons. Before a shipment is sent off, a quality control inspector takes a random sample of 200 balloons from the shipment and counts the number of balloons
In the Annual Health Survey conducted by the British Government, one of the health indicators reported is obesity, a factor that has been viewed with increasing alarm in many western countries. A recent Health Survey reported that in a random sample of 3509 British adults 23% were medically
A study is being conducted to determine whether babies born to mothers who have used invitro fertilization (IVF) have a higher rate of infant reflux than the 13% rate for babies born to women who have not used IVF. The study involves a random sample of 500 babies whose mothers used IVF. You are to
You have selected two random samples of size 50, one from Population 1 and one from Population 2. You intend to use the samples to test the following hypotheses regarding the difference in means for the two populations: H0: μ1 – μ2 = 0 Ha: μ1 – μ2 ≠ 0 a. Suppose the sample results
Refer to Exercise 18. You have selected two random samples of size 50, one from Population 1 and one from Population 2. You intend to use the samples to test the following hypotheses regarding the difference in means for the two populations: H0: μ1 – μ2 = 0 Ha: μ1 – μ2 ≠ 0 a. Compute
Refer to Exercise 1. State your decision rule by filling in the blank below: Reject the null hypothesis if the sample proportion is less than ______.In exerciseYou want to set up a test for the following hypotheses: H0: π > .4 Ha: π < .4 You will have a random sample of 200 population
You have a random sample of 100 population members from each of two populations. You intend to use sample results to test the following hypotheses: H0: μ1 – μ2 < 0 Ha: μ1 – μ2 > 0 a. Suppose the sample results are x̅1 = 85 and x̅2 = 82. Compute the sample test statistic, z
Refer to Exercise 20. You have a random sample of 100 population members from each of two populations. You intend to use sample results to test the following hypotheses: H0: μ1 – μ2 < 0 Ha: μ1 – μ2 > 0 a. Compute the p-value for the sample result and explain what it
A study conducted at the University of Chicago Hospitals compared the hospital related performance of “hospitalists”— physicians specializing in caring for hospitalized patients— to the performance of general internists who devote only a small percentage of their time caring for
The Boulder Fire Department conducted a study of average emergency response times for its two stations. For a sample of 125 emergency responses by the North Boulder Station, average response time was 16.2 minutes. For a sample of 160 emergency responses by the South Boulder Station, average
In an agricultural study done to examine the impact of using a new mix of pesticides on the Canadian canola crop, a sample of 459 farms using the new pesticide mix and a sample of 295 farms using a conventional pesticide mix were randomly selected. The average gross revenue per acre for the sample
You have a random sample of 10 population members from each of two normal populations, and you want to set up a test using the following hypotheses:H0: μ1 – μ2 = 0 Ha: μ1 – μ2 ≠ 0a. Using a significance level of .05, identify the critical tscores for the test and state your decision
Refer to Exercise 25. Assume that the sample sizes were both 100. Show how this would affect your test and your decision.In exerciseYou have a random sample of 10 population members from each of two normal populations, and you want to set up a test using the following hypotheses:H0: μ1 – μ2 = 0
You have a random sample of 10 Population 1 members and a sample of 13 Population 2 members, and you want to set up a test using the following hypotheses: H0: μ1 – μ2 < 0 (The mean of Population 1 is no greater than the mean of Population 2.) Ha: μ1 – μ2 > 0 (The mean of Population 1
A study is being conducted to compare the average training time for two groups of airport security personnel: those who work for the federal government and those employed by private security companies. In a random sample of government employed security personnel, average training time was 68.2
Refer to Exercise 22. There a study examined the average hospital stay for patients under the care of each of two classes of physicians— hospitalists and general internists. Suppose now that the two population standard deviations are unknown and that sample results were as follows: Patients in
Refer to Exercise 1. You want to set up a test for the following hypotheses: H0: π > .4 Ha: π < .4 You will have a random sample of 200 population members to make your decision. a. Compute the pvalue for the .365 sample result and explain what it means. b. Use the pvalue from part a to
Refer to Exercise 23. There the Boulder Fire Department conducted a study of average emergency response times for its two stations. Assume now that the two population standard deviations are unknown and the sample results were as follows: For the sample of emergency responses by the North Boulder
You have a random sample of 100 population members from each of two populations and you want to set up a test for the following hypotheses: H0: μ1 – μ2 = 0 Ha: μ1 – μ2 ≠ 0 a. Suppose the sample results are: p1 .42 and p2 .38. Compute p pooled. b. Calculate the sample test
Refer to Exercise 31. You have a random sample of 100 population members from each of two populations and you want to set up a test for the following hypotheses: H0: μ1 – μ2 = 0 Ha: μ1 – μ2 ≠ 0 a. Compute the pvalue for the sample result and explain what it means. b. Use
You have a random sample of 500 population members from each of two populations and you want to set up a test for the following hypotheses: H0: μ1 – μ2 < 0 Ha: μ1 – μ2 > 0 a. Suppose the sample results are: p̅1 = .31 and p̅ 2 = .25. Compute p̅ pooled. b.
Refer to Exercise 33. You have a random sample of 500 population members from each of two populations and you want to set up a test for the following hypotheses: H0: μ1 – μ2 < 0 Ha: μ1 – μ2 > 0 a. Compute the pvalue for the sample result and explain what it means.b. Use the
In a survey involving a national random sample of 1600 second semester university seniors (800 men and 800 women), 67% of the women in the survey and 64% of the men said that they had received at least one job offer. Can these survey results be used to make the case that the proportion of female
Based on an online survey done by Symantec Corp., a large Internet security technology company, the company reported that seniors (aged 65 years or older) are the most spam savvy online demographic group and are less likely than other age groups to fall victim to email scams. (“Spam” is the
In the world of mutual funds there are two basic types: managed funds and indexed funds. Managed funds are actively managed by a fund manager who is constantly making buy and sell decisions to try to maximize returns. Index funds require very little active management since the securities that
Based on its home ownership survey, home mortgage giant Fannie Mae reports “significant differences in home buying knowledge between demographic groups.”In a random sample of 236 college educated adults and 259 high school educated adults, the survey found that 65% of those in the college
Helene Parker Ltd. wants to determine whether two different instore promotions for its new line of skin care products will produce different levels of sales. The company has matched stores according to size and location and randomly chosen five matched pairs of stores. One store in each matched
You want to set up a test for the following hypotheses: H0: π = .65 Ha: π ≠ .65. You will have a random sample of 225 population members to make your decision.a. Suppose the sample proportion turns out to be π > .69. Compute the sample test statistic, z stat. b. Using a significance level
Montparnasse Sports selected six University of Georgia tennis players to test the durability of its two new polyester racket strings. The table below shows how long the test strings lasted before they broke. Treating the six players as a sample of matched pairs and assuming that all necessary
To assess the effectiveness of a new workplace safety awareness program, five employees at XYZ Inc. were randomly chosen. Before they participate in the awareness program, the five workers are given a test consisting of 100 safety related questions. After participating in the program, the same five
Kellen Auto Products road tested its new gasoline additive intended to improve gas mileage in passenger cars. The test used five new Chevrolet Orions and five drivers. Each driver drove his/ her assigned car for 500 miles of ordinary daily driving using the additive and 500 miles using no additive.
Alta Vista University is trying to evaluate the effectiveness of its new freshman writing class. Each student in the class has submitted a preclass writing sample and a postclass writing sample scored by an English professor with no knowledge of which sample is preclass and which is postclass, and
The decline in union membership among American workers has been fairly steady for a number of years. In 2010, union membership was reported to be 11.9% (source: US Bureau of Labor Statistics). In a current study involving a random sample of 1500 workers nationwide, 146 of the workers in the sample
A recent Yahoo News article stated that at least 60% of the new construction jobs in western North Dakota’s oil and gas fields are being filled by out-of-state workers. You take a random sample of 150 construction workers in the area and find that 84 of them are from out-of-state. Is this enough
Among the measurable goals set by the Jefferson County School Board (Golden, Colorado) is that more than 75% of community members will agree “that the Board of Education provides them regular opportunities to voice their views on school district matters.”In a survey of 200 randomly selected
Last year, 15% of the seniors at Louisiana Tech reported that they had already started a business that they planned to continue running after graduation. You take a simple random sample of 150 current seniors at the school and find that 18 students in the sample report that they have started a
A recent article by a writer for trentonian. com stated that no more than 20% of Americans support increased oil exploration off the east coast of the US. To test that claim, a sample of 500 randomly selected adults is contacted by Centennial Polling. According to survey results, 120 of those
The company that produces the scratchandwin tickets for The FilthyRich Instant Win Super Lottery has assured you that exactly 10% of the tickets are winners (that is, they will pay the purchaser at least a dollar). As an inspector for The FilthyRich Instant Win Super Lottery, Inc., you want to be
Refer to Exercise 4. State your decision rule by filling in the blanks below: Reject the null hypothesis if the sample proportion is less than ______ or more than _______.In exerciseYou want to set up a test for the following hypotheses: H0: π = .65 Ha: π ≠ .65. You will have a random sample of
Refer to Exercise 49. In exerciseThe company that produces the scratchandwin tickets for The FilthyRich Instant Win Super Lottery has assured you that exactly 10% of the tickets are winners (that is, they will pay the purchaser at least a dollar). As an inspector for The FilthyRich Instant Win
A recent Associated Press report stated that 30% of dentists nationwide have experienced declining revenues during the past 5 years. You survey a random sample of 100 Indiana dentists and find that 24 of those surveyed report declining revenues. Is this sufficient sample evidence to reject a null
Your cousin Howard claims to have ESP powers. More specifically, he claims that he can predict, with uncanny accuracy, the outcome of a coin toss. He has you toss a coin 100 times and correctly predicts the outcome of the toss in 61 cases. Set up an appropriate hypothesis test to help determine
Eighty thousand signatures have recently been collected for a proposed ballot measure in the upcoming state election. The Secretary of State requires validation of the signatures to ensure against fraud, duplication, incorrect addresses, etc. In all, the law requires that more than 60,000 valid
To monitor the manufacturing process at Skiltron Industries, quality inspectors perform periodic inspections of the units being produced. As a matter of policy, if the process is producing no more than 6% defective units, it is considered “in control” and is allowed to continue unadjusted. If,
Refer to Exercise 54. In exerciseTo monitor the manufacturing process at Skiltron Industries, quality inspectors perform periodic inspections of the units being produced. As a matter of policy, if the process is producing no more than 6% defective units, it is considered “in control” and is
The telecommunications manager at the Lowell Call Center is concerned about the difference in average system downtime between day and night operations at the center. A random sample of 45 day shift records and 45 night shift records are examined. Average downtime for the day shift sample is 53
Almonte, Inc., a maker of low-priced hair care products, claims that its hair spray lasts as long as the industry leader’s higher priced product. You take a sample of 60 applications of Almonte’s hair spray and 60 applications of the leading hair spray. Results: On average, the Almonte
The Regal Tire Company claims that its new eco-friendly tires last, on average, longer than the leading premium tire. The company reports that in a test involving 200 randomly selected Regal tires and 200 premium tires, the Regal tires lasted an average of 46,514 miles, with standard deviation of
In a study evaluating search engines, TechDay. com randomly selected 200 Internet users. One hundred of the users selected were given the task of finding a specific piece of information using Google. The other 100 were given the task of finding the same specific piece of information using Bing.
Refer to Exercise 4. You want to set up a test for the following hypotheses: H0: π = .65 Ha: π ≠ .65. You will have a random sample of 225 population members to make your decision.a. Compute the pvalue for the .69 sample result and explain what it means. b. Use the pvalue from part a
Refer to Exercise 59 (Google vs. Bing). Suppose the sample size was 12 rather than 100 for both sample groups. Reconstruct the hypothesis test and report your conclusion. What additional population assumptions did you make in this small sample case?In exerciseIn a study evaluating search engines,

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