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Business Statistics 2nd Edition Robert A. Donnelly - Solutions

Certain advertisers would like to estimate the proportion of viewers who spend the majority of their television time watching alone. The consensus is that this percentage has been increasing over the years due to the increased number of television sets in U. S. households. a. Determine the sample
The Department of Labor would like to estimate the average weekly wages for U. S. adults with a margin of error equal to $ 20. Determine the sample sizes needed to construct a confidence interval for this estimate using the following confidence levels. Assume the population standard deviation for
To design a new advertising campaign, Volkswagen would like to estimate the proportion of drivers of the new VW Beetle who are women. In a random sample of 250 Beetle owners, 140 of them were women. a. Construct a 95% confidence interval to estimate this proportion. b. What is the margin of error
Much of the recent euro currency crisis that struck Europe was attributed to the economy of Greece. George Papandreou, Greece’s prime minister, claimed that corruption was at the heart of the crisis. Transparency International is a global civil organization that reports on worldwide
Verizon Wireless would like to estimate the average number of text messages received by American teenagers per month. A random sample of 60 teenaged customers was selected. The sample average was 2,272 messages per month, and the sample standard deviation was 953 messages per month. Construct
GMAC reported that 85% of drivers incorrectly answered a question asking them what they are supposed to do when approaching a yellow light. (The correct answer is slow down and proceed through the light only if it is safe to do so. But I’m sure you already knew that.) To verify this surprising
The U. S. Census Bureau would like to estimate the average annual contributions to charity by the members of Generation Y (people born in the United States in the years 1981 through 1991). The following data show the annual contributions to charity for a random sample of 18 individuals in this
Construct a 90% confidence interval to estimate the population mean using the following data:x̅ = 85 σ = 20 n = 10What assumptions need to be made to construct this interval?
A recent trend in the auto financing market is an increase in the length of new car loans. According to Experian, 11% of new car loans in 2009 were between 73 and 84 months in length. Suppose a random sample of 260 new cars loans in 2014 was selected and found to have 47 that were between 73 and 84
In 2010, Bank of America reported that 7.1% of its credit card holders were at least 30 days overdue on their monthly payments. In 2014, a random sample of 450 credit card customers found that 20 were at least 30 days overdue on their monthly payments. Using a 90% confidence interval, can you
Travelocity would like to estimate the current average domestic airfare. The following data show the airfares for 24 randomly selected tickets for travel within the United States. These data can also be found in the Excel file titled domestic airfares.xlsx.a. Construct a 99% confidence interval
Using a 90% confidence level, the U. S. Department of Labor would like to estimate the average weekly hours worked by private employees in the United States who are adults. Assume the standard deviation for the number of hours worked is seven hours. Determine the sample sizes needed to construct
Michael Smith is running to become the state representative for the 12th District in Delaware. The district has 310 registered Republican voters. In an effort to plan his campaign strategy, Michael would like to estimate the average age of a Republican voter in the district. Following a random
A local church has a congregation composed of 362 members. The church’s administrators would like to find out how the congregation would react if the church moved its 11: 00 a.m. service to 10: 00 a.m. A random sample of 115 members was drawn, 46 of whom were in favor of the change.a. Construct a
Clear Bags is an online company that sells a variety of protective bags for photo, art, and stationery products that are placed on display. Currently, its customer database consists of 872 individuals who place at least one order per year. Clear Bags would like to estimate the proportion of their
The manager at an automobile dealership would like to estimate the average satisfaction score from the 915 customers who purchased a car or truck last year. The company goal is to achieve an average satisfaction score of at least 80 on a scale of 0– 100. A random sample of 80 customers had an
The Excel file labeled Lowes.xlsx lists the receipt total for 350 randomly selected customers for the home improvement chain Lowe’s.a. Use these data to construct a 95% confidence interval to estimate the average receipt total for a Lowe’s customer.b. What is the margin of error for this
The Hawaii Island Chamber of Commerce collects ocean temperature data to help promote tourism for local businesses. The Excel file titled Hawaii ocean temps.xlsx lists daily ocean temperatures for the past 125 days.a. Use these data to construct a 90% confidence interval to estimate the average
Construct a 99% confidence interval to estimate the population mean using the following data:x̅ = 60 σ = 17 n = 12What assumptions need to be made to construct this interval?
Banking fees have received much attention during the recent economic recession as banks look for ways to recover from the crisis. A sample of 30 customers paid an average fee of $ 12.55 per month on their interest bearing checking accounts. Assume the population standard deviation is $ 1.75.a.
Calculate the p value for the following conditions and determine whether to reject the null hypothesis:a. One tail test, zx = 1.50, and σ = 0.05b. One tail test, zx = 2.25, and σ = 0.02c. Two tail test, zx = 2.10, and σ = 0.05d. Two tail test, zx = 1.37, and σ = 0.10
Zingo’s Grocery store claims that customers spend an average of 5 minutes waiting for service at the store’s deli counter. A random sample of 45 customers was timed at the deli counter, and the average service time was found to be 5.5 minutes. Assume the standard deviation is 1.7 minutes per
Determine the critical t scores for each of the following conditions:a. One tail test, σ = 0.05, and n = 21b. Two tail test, σ = 0.02, and n = 10c. Two tail test, σ = 0.05, and n = 28d. Two tail test, σ = 0.01, and n = 40
Consider the following hypotheses:H0: μ > 65H1: μ < 65Given that x = 58.8, s = 10.4, n = 25, and σ = 0.05, answer the following questions:a. What conclusion should be drawn?b. Use PHStat to determine the p value for this test.
Consider the following hypotheses:H0: μ = 140H1: μ ≠ 140Given that x = 148.1, s = 37.5, n = 20, and σ = 0.02, answer the following questions:a. What conclusion should be drawn?b. Use PHStat to determine the p value for this test.
Consider the following hypotheses and sample data, and then answer the following questions using σ = 0.05.H0: μ < 16H1: μ > 1619 19 12 18 22 21 14 21 17 15a. What conclusion should be drawn?b. Use PHStat to determine the p value for this test.
Consider the following hypotheses and sample data, and then answer the following questions using σ = 0.05.H0: μ = 10H1: μ ≠ 10a. What conclusion should be drawn?b. Use PHStat to determine the p value for this test.
During the winter of 2012– 2013, the average utility bill for Delaware residents was $ 186 per month. A random sample of 40 customers was selected during the winter of 2013– 2014, and the average bill was found to be $ 178.10 with a sample standard deviation of $ 22.40.a. Using σ = 0.05, does
Suppose the average size of a new house built in a certain county in 2010 was 2,272 square feet. A random sample of 25 new homes built in this county was selected in 2014. The average square footage was 2,190, with a sample standard deviation of 225 square feet.a. Using σ = 0.02, does this sample
According to BIGresearch, holiday shoppers spent an average of $ 373 over the Thanksgiving weekend in 2008. The following data show the amount spent by a random sample of holiday shoppers during the same weekend in 2014:a. Test the hypothesis that that shoppers spent less than an average of $ 373
According to the market research firm NPD Group, Americans ate an average of 211 meals in restaurants in 2001. The following data show the number of meals eaten in restaurants as determined from a random sample of Americans in 2014:a. Using σ = 0.05, test the hypothesis that the number of meals
Calculate the p value for the following conditions and determine whether to reject the null hypothesis:a. One tail test, zx = 1.46, and σ = 0.10b. One tail test, zx = 2.48, and σ = 0.01c. Two tail test, zx = 1.92, and σ = 0.01d. Two tail test, zx = 2.76, and σ = 0.02
Fannie Mae is a government sponsored organization that was established in 1938 after the Depression to provide local banks with money from the federal government to be used for residential mortgages in an effort to increase homeownership rates. As lending standards have tightened during the most
In 2008, the online travel agency Travelocity reported that summer travelers booked their airline reservations an average of 73.3 days in advance. A random sample of 40 summer travelers in 2014 was selected, and the number of days travelers booked their airline reservations in advance was recorded.
Calculate the p value for the following conditions and determine whether to reject the null hypothesis:a. One tail (lower) test, zp = 1.36, and σ = 0.05b. One tail (upper) test, zp = 1.28, and σ = 0.10c. Two tail test, zp = 2.29, and σ = 0.05d. Two tail test, zp = 0.90, and σ = 0.01
Calculate the p value for the following conditions and determine whether to reject the null hypothesis:a. One tail (upper) test, zp = 2.15, and σ = 0.10b. One tail (lower) test, zp = 0.66, and σ = 0.05c. Two tail test, zp = 1.69, and σ = 0.05d. Two tail test, zp = 1.44, and σ = 0.02
Consider the following hypotheses:H0: p < 0.24H1: p > 0.24Given that p = 0.277, n = 130, and σ = 0.05, answer the following questions:a. What conclusion should be drawn?b. Determine the p value for this test.
Consider the following hypotheses:H0: p = 0.69H1: p ≠ 0.69Given that p¯ = 0.606, n = 160, and σ = 0.05, answer the following questions:a. What conclusion should be drawn?b. Determine the p value for this test.
An increased number of U. S. colleges have been using online resources such as Facebook and Google to research applicants. According to Kaplan Test Prep, 26% of admissions officers indicated that they visited an applying student’s social networking page in 2012. A random sample of 100 admissions
Consumers with credit scores below 600 have a very difficult time getting approved for car or mortgage loans. In 2012, 24% of Americans had a credit score below 600. Due to the recent financial crisis, the federal government is concerned that this proportion has increased. To test this hypothesis,
A 2010 survey by CarMD. com found that 64% of vehicle owners avoided automotive maintenance and repairs. Suppose Sears Automotive would like to perform a hypothesis test to challenge this finding. From a random sample of 170 vehicle owners that was recently taken, it was found that 103 avoid
Recently, the number of airline companies that offer inflight WiFi service to passengers has increased. However, it is estimated that only 10% of the passengers who have WiFi available to them are willing to pay for it. Suppose Gogo, the largest provider of airline WiFi service, would like to test
Consider the following hypotheses:H0: μ < 50H1: μ > 50Given that x = 52, s = 12, n = 36, and σ = 0.05, answer the following questions:a. What conclusion should be drawn?b. Determine the p value for this test.
The Eurozone consists of 17 European countries that use the euro as their common currency. The European debt crisis, which began in 2009, made it difficult for some Eurozone countries to repay their government debt. A national poll in 2013 indicated that 26% of Germans felt that exiting the
The number of long term unemployed, defined as those out of work for more than 27 weeks, has been a detriment to the recent economic recovery. In 2013, 40% of the unemployed had been out of work for more than 27 weeks. Government policy makers feel that this percentage has declined recently as the
Consider the following hypotheses:H0: μ < 30H1: μ > 30Given that s = 6, n = 42, and σ = 0.05, calculate b for each of the following conditions:a. μ = 31b. μ = 32
Consider the following hypotheses:H0: μ > 75H1: μ < 75Given that s = 15, n = 36, and σ = 0.01, calculate b for each of the following conditions:a. μ = 73b. μ = 66
Consider the following hypotheses: H0: p < 0.72 H1: p > 0.72 Given that n = 100 and σ = 0.05, calculate b for each of the following conditions.a. p = 0.66b. p = 0.62
Consider the following hypotheses: H0: p < 0.15 H1: p > 0.15 Given that n = 150 and σ = 0.10, calculate b for each of the following conditions.a. p = 0.16b. p = 0.22
Consider the following hypotheses:H0: μ = 120H1: μ ≠ 120Given that s = 27, n = 60, and σ = 0.05, calculate b for each of the following conditions:a. μ = 131b. μ = 115For a two tail hypothesis test, b is the area between the critical means under the actual distribution, as shown in the
The average retirement age for French citizens in 2009 was reported to be 58.7 years according to the Organization for Economic Co operation and Development, an international group dedicated to promoting trade and economic growth. With the French pension system operating with a deficit, a bill was
The crisis in the real estate market caused the listing prices of homes in areas such as Orlando, Florida, to fall from previous years. A real estate office would like to sample 50 new listings randomly to test the hypothesis that the current listing price average is less than $ 243,000, the
According to Nielsen Company, 21% of households in the United States in 2009 relied solely on their cell phones for phone service instead of landlines. Nielsen also reported that this percentage has steadily increased over the previous years. AT& T recently sampled 125 households randomly to
Consider the following hypotheses:H0: μ = 120H1: μ ≠ 120Given that x = 111, s = 26, n = 40, and σ = 0.05, answer the following questions:a. What conclusion should be drawn?b. Determine the p value for this test
The Dome restaurant in Delaware is under new management. While under the previous management, 15% of the customers rated their dining experiences as “unsatisfactory.” The restaurant’s current managers would like to test their belief that this percentage is now lower due to new training
According to the Bureau of Labor, the average American aged 15 years or older gets 8 hours and 23 minutes (503 minutes) of sleep per night. To test if this average has changed recently, a random sample of 55 Americans aged 15 years and older was selected, and the number of minutes they slept
Contact rate is defined as the percentage of plate appearances by Major League Baseball players that the ball is put in play (as opposed to striking out). Historically, the Major League average has been 80%. Suppose we want to test that this rate has not changed recently by randomly selecting 250
According to Hotels.com, the average room rate for a New York City hotel was $ 204 in 2011. Suppose the Chamber of Commerce of New York City would like to test if this rate has changed recently by randomly sampling 40 room rates. The mean of this sample was found to be $ 212.30. Assume the
According to comScore, Apple’s smartphone operating system controlled 39% of the U. S. smartphone market in February 2013. Suppose Apple believes that this market share will increase due to recent advertising campaign. To test this hypothesis, a random sample of 275 smartphone users was selected,
In April 2013, President Obama’s approval rating was 52%. Suppose the White House staff was concerned that the rating had fallen due to the administration’s handling of the government’s debt crisis during the summer of 2013. Let’s say that out of a random sample of 300 adults, 144 approved
Recently, Seasons Pizza has begun receiving complaints from customers about the amount of time they wait for their pizza deliveries. To address this issue, Seasons made some operational changes and added more delivery people to its staff. The restaurant would now like to test the hypothesis that
According to the Journal of the American Medical Association, resident doctors worked an average of 59.3 hours per week at hospitals from 2006 to 2008. The Accreditation Council for Graduate Medical Education, which certifies residency programs in hospitals, has developed a plan to reduce the long
In July 2010, a survey conducted by Webroot, a software security firm, found that 32% of the respondents use the same passwords for all of the social networking Web sites they log on to (which, by the way, is not the best idea). Suppose a follow up survey was recently conducted to investigate if
A Wall Street Journal article reported that 15 of the 30 NBA teams have employees whose sole responsibility is to analyze data. The information compiled by these “statheads” is then used to help make decisions during games, for the draft, and to evaluate potential trades. At the time of the
Suppose the University of Memphis advertises that its average class size is 35 students or less. A student organization is concerned that budget cuts have led to increased class sizes and would like to test this claim. A random sample of 38 classes was selected, and the average class size was found
According to Fidelity Investments, the average 401(k) account balance was $ 77,300 in 2013. To test if this average has recently changed, suppose a sample of 30 401(k) plans was recently selected, and it was found that the average 401(k) balance was $ 85,200. Assume the population standard
Smart meters are a special type of electrical meter that monitors the usage of electricity and communicates that information back to the utility company. According to the Energy Information Administration, 26.5% of homes in the United States were equipped with smart meters in 2011. To test if this
Suppose the Department of Transportation would like to test the hypothesis that the average gasoline consumption per car in the United States is 6 liters per day. (We’re going metric here.) The following data represent the number of liters used per day for 25 randomly selected cars. These data
A growing number of younger employees have been participating in their company’s retirement plans in recent years. According to Vanguard Group, 44% of employees under the age of 25 were making contributions to their 401(k) plans in 2011 (compared to just 27% in 2003). A random sample of 340
According to Pew Research Center surveys, 12% of American adults did not own a cell phone in 2012. Suppose Verizon Wireless would like to test if this percentage has recently changed. A recent random sample of 280 American adults was selected, and it was found that 29 of them did not own a cell
According to a Staples/ Decision Analyst survey conducted in 2013, full time small business owners in the United States worked an average of 50.4 hours per week. A recent random sample of 60 full time small business owners was selected, and it was found that they worked an average of 48.6 hours
U. S. cell phone customers reportedly sent an average of 700 text messages per month in 2012, which is lower than previous years. Suppose AT& T would like to test the hypothesis that the average number of text messages per month has declined since 2012. A recent random sample of 75 U. S. cell
Security experts are raising concerns about hackers targeting smartphones, as owners store more personal and financial information on the devices. In 2012, it was estimated that 7% of smartphone users were victims of malicious attacks on their mobile devices. A random sample of 190 smartphone
During 2012, the average monthly bill for digital cable in the United States was $ 86 according to research firm Centris. Suppose Comcast would like to test the hypothesis that the average monthly bill is higher than $ 86 this year. A random sample of 52 households was chosen. Assume the standard
The average wait time on the phone for taxpayers calling the IRS in 2012 was 1,080 seconds. Suppose (if you can use your imagination) that the IRS made operational changes in an effort to reduce wait times during 2013. To test the effectiveness of these changes, a random sample of 50 phone calls
Suppose the coffee industry claimed that the average U. S. adult drinks 1.7 cups of coffee per day. To test this claim, a random sample of 34 adults was selected, and their average coffee consumption was found to be 1.95 cups per day. Assume the standard deviation of daily coffee consumption per
Suppose the average operating time per charge for a 6 volt laptop battery is currently 4.0 hours. Let’s say SWET Electronic Technology claims it has developed a new 6 volt battery that has an average charge life that exceeds 4.0 hours. To test the effectiveness of this new technology, a random
According to the U. S. Department of Labor, 12.3% of the U. S. workforce was unionized in 2009. This percentage has declined steadily since the end of World War II, when more than a third of U. S. workers belonged to a union. Suppose the department would like to test the hypothesis that the
Suppose the Real Estate Commission for the state of Delaware would like to test the hypothesis that the average number of days a home is on the market in New Castle County is 60 days. To test this hypothesis, 32 homes sold during the year were selected and the number of days that the homes were on
Small businesses are viewed by many as the backbone of the U. S. economy. Small business owners are often described as entrepreneurs, requiring a variety of skills in order to be successful. A 2013 survey of small business owners found that the average age was 40 years. Suppose the Small Business
Small businesses (See Problem 9.63) are viewed by many as the backbone of the U. S. economy. Small business owners are often described as entrepreneurs, requiring a variety of skills in order to be successful. A 2013 survey of small business owners found that 47% had a college degree beyond a
A Wall Street Journal article discussed the impact that the recent economic downturn has had on the job market for clergy. Many churches have reduced or frozen the salaries and benefits for their clergy because donations from churchgoers have declined. The article reported that the average salary
Recently, cell phone companies have been heavily investing in the African continent. With only half of its population owning a phone, Nigeria is considered a market that has much potential for growth. However, recent competition has driven prices for cell phones down in the country. It has been
Season’s Pizza recently hired additional drivers and as a result now claims that its average delivery time for orders is under 45 minutes. A sample of 30 customer deliveries was examined, and the average delivery time was found to be 42.3 minutes. Historically, the standard deviation for delivery
Bob’s Sporting Goods believes the average age of its customers is 40 or less. A random sample of 60 customers was surveyed, and the average customer age was found to be 42.7 years. Assume the standard deviation for customer age is 8.0 years. Using σ = 0.02, answer the following questions:a. Does
According to the government lending institution Sallie Mae, students graduating from college have an average credit card debt of $ 4,100. A random sample of 50 graduating seniors was selected, and their average credit card debt was found to be $ 4,360. Assume the standard deviation for student
Consider the following hypothesis statement using α = 0.05 and data from two independent samples:a. Calculate the appropriate test statistic and interpret the result.b. Calculate the p value and interpret the result.c. Verify your results using PHStat.
Salary data from two random samples of high school teachers from Pennsylvania and Ohio are as follows. Also shown are the population standard deviations for these populations.a. Construct a 90% confidence interval to estimate the difference in the average salaries of the high school teachers in
Consider the following hypothesis statement using α = 0.05 and data from two independent samples. Assume the population variances are equal and the populations are normally distributed.a. Calculate the appropriate test statistic and interpret the result.b. Approximate the p value using Table 5 in
Consider the following hypothesis statement using α = 0.05 and data from two independent samples. Assume the population variances are equal and the populations are normally distributed.a. Calculate the appropriate test statistic and interpret the result.b. Approximate the p value using Table 5 in
Consider the following hypothesis statement using α = 0.05 and data from two independent samples. Assume the population variances are not equal and the populations are normally distributed.a. Calculate the appropriate test statistic and interpret the result.b. Approximate the p value using Table 5
Consider the following hypothesis statement using α = 0.10 and data from two independent samples. Assume the population variances are not equal and the populations are normally distributed.a. Calculate the appropriate test statistic and interpret the result.b. Approximate the p value using Table 5
Consider the following data from two independent samples with equal population variances. Construct a 95% confidence interval to estimate the difference in population means. Assume the population variances are equal and that the populations are normally distributed.
Consider the following data from two independent samples with equal population variances. Construct a 90% confidence interval to estimate the difference in population means. Assume the population variances are equal and that the populations are normally distributed.
The Transportation Security Administration would like to compare the average amount of time it takes passengers to pass through airport security at Philadelphia versus Orlando during peak times. A random sample of 25 travelers in Philadelphia spent an average of 14.6 minutes to pass through airport
The following table shows the average hourly wage rates for day care centers from the Northeast and Midwest regions of the United States based on two random samples:a. Perform a hypothesis test using α = 0.05 to determine if the average hourly wage for day care workers in the Northeast is $ 0.50
The following table shows the results of two random samples that measured the average number of minutes per charge for AA Lithium ion (Li ion) rechargeable batteries versus Nickel– Metal Hydride (NiMH) rechargeable batteries:a. Perform a hypothesis test using α = 0.10 to determine if the average
Consider the following hypothesis statement using α = 0.10 and data from two independent samples:a. Calculate the appropriate test statistic and interpret the result.b. Calculate the p value and interpret the result.c. Verify your results using PHStat.
Suppose a student organization at the University of Illinois collected data for a study involving class sizes from different departments. A random sample of 11 classes in the business department had an average size of 38.1 students with a sample standard deviation of 10.6 students. A random sample
An online travel agent who specializes in cruises wanted to compare the cost of cruising to different destinations on various cruise lines. The following random sample data show the average cost of a seven day cruise in a standard room to Alaska vs. the average cost of a seven day cruise in a

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