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CHAPTER 10

 

31. A new weight-watching company, Weight Reducers International, advertises that those

who join will lose, on the average, 10 pounds the first two weeks with a standard deviation

of 2.8 pounds. A random sample of 50 people who joined the new weight reduction program

revealed the mean loss to be 9 pounds. At the .05 level of significance, can we

conclude that those joining Weight Reducers on average will lose less than 10 pounds?

Determine the p-value.

 

H0: mean = 10 pounds

Ha: mean < 10 pounds

 

critical value is -1.6449 from a table

 

z = (x-mu)/(sigma/sqrt(N))

z = (9-10)/(2.8/sqrt(50))

z = -2.52538

The p value is about 0.006 (from a table)

The z value is lower than the critical value, so we reject the null, and conclude that they lose less than 10 pounds.

32. Dole Pineapple, Inc., is concerned that the 16-ounce can of sliced pineapple is being

overfilled. Assume the standard deviation of the process is .03 ounces. The qualitycontrol

department took a random sample of 50 cans and found that the arithmetic mean

weight was 16.05 ounces. At the 5 percent level of significance, can we conclude that

the mean weight is greater than 16 ounces? Determine the p-value

 

H0: mean = 16

Ha: mean > 16

 

Get the test statistic:

z = (x-mu)/(sigma/sqrt(N))

z = (16.05-16)/(0.03/sqrt(50))

z = 11.785113

 

Using a p value calculator:

The p value is so slightly above 0 that the calculator shows 0.

 

Since the p value is so small, there is enough evidence to suggest that the cans are over filled.

. 38. A recent article in The Wall Street Journal reported that the 30-year mortgage rate is now

less than 6 percent. A sample of eight small banks in the Midwest revealed the following

30-year rates (in percent):

 

4.8 5.3 6.5 4.8 6.1 5.8 6.2 5.6

 

At the .01 significance level, can we conclude that the 30-year mortgage rate for small

banks is less than 6 percent? Estimate the p-value.

mean =

|5.6375 |

stdev =

|0.63457 |

 

H0: mean rate = 6

Ha: mean rate < 6

 

Get the t statistic:

t = (x-mu)/(sigma/sqrt(N))

t = (5.6375-6)/(0.63457/sqrt(8))

t = -1.615747

 

The p value, one tail, df = N-1 = 7, is:

0.075064

 

This p value is greater than the 0.01 significance, so we do not reject the null hypothesis. There is not enough evidence to conclude that the rate is less than 6.

 

CHAPTER 11

 

27. A recent study focused on the number of times men and women who live alone buy

take-out dinner in a month. The information is summarized below.

 

Statistic Men Women

Sample mean 24.51 22.69

Population standard deviation 4.48 3.86

Sample size 35 40

 

At the .01 significance level, is there a difference in the mean number of times men and

women order take-out dinners in a month? What is the p-value?

 

H0: men mean – women mean = 0

Ha: men mean – women mean not equal to 0

Get the test statistic:

(24.51-22.69)/sqrt(4.48^2/35 + 3.86^2/40)

= 1.871

The p value (from a table) is:

About 0.06

This is well above the 0.01 significance, so we do not reject the null hypothesis. There is no statistic difference.

46. Grand Strand Family Medical Center is specifically set up to treat minor medical emergencies

for visitors to the Myrtle Beach area. There are two facilities, one in the Little

River Area and the other in Murrells Inlet. The Quality Assurance Department wishes to

compare the mean waiting time for patients at the two locations. Samples of the waiting

times, reported in minutes, follow:

 

Location Waiting Time

Little River 31.73 28.77 29.53 22.08 29.47 18.60 32.94 25.18 29.82 26.49

Murrells Inlet 22.93 23.92 26.92 27.20 26.44 25.62 30.61 29.44 23.09 23.10 26.69 22.31

 

Assume the population standard deviations are not the same. At the .05 significance level,

is there a difference in the mean waiting time?

 

See Excel file

52. The president of the American Insurance Institute wants to compare the yearly costs of

auto insurance offered by two leading companies. He selects a sample of 15 families,

some with only a single insured driver, others with several teenage drivers, and pays each

family a stipend to contact the two companies and ask for a price quote. To make the

data comparable, certain features, such as the deductible amount and limits of liability,

 

are standardized. The sample information is reported below. At the .10 significance level,

can we conclude that there is a difference in the amounts quoted?

 

Progressive GEICO

Family Car Insurance Mutual Insurance

Becker $2,090 $1,610

Berry 1,683 1,247

Cobb 1,402 2,327

Debuck 1,830 1,367

DuBrul 930 1,461

Eckroate 697 1,789

German 1,741 1,621

Glasson 1,129 1,914

King 1,018 1,956

Kucic 1,881 1,772

Meredith 1,571 1,375

Obeid 874 1,527

Price 1,579 1,767

Phillips 1,577 1,636

Tresize 860 1,188

 

See Excel File!

CHAPTER 12

 

23. A real estate agent in the coastal area of Georgia wants to compare the variation in the

selling price of homes on the oceanfront with those one to three blocks from the ocean.

A sample of 21 oceanfront homes sold within the last year revealed the standard deviation

of the selling prices was $45,600. A sample of 18 homes, also sold within the last

year, that were one to three blocks from the ocean revealed that the standard deviation

was $21,330. At the .01 significance level, can we conclude that there is more variation

in the selling prices of the oceanfront homes?

 

H0: variances are equal

Ha: variances are not equal

 

dfN = 21-1 = 20

dfD = 18-1 = 17

 

Using a table, the critical F value, with 0.01 significance is:

3.1615

 

Get the test statistic:

sigma1^2 / sigma2^2

= 45600^2/21330^2

= 4.57033

 

The test statistic is greater than the critical value, so we reject the null hypothesis and conclude that the variances are different.

28. The following is a partial ANOVA table.

 

Sum of Mean

Source Squares df Square F

____________________________________________________

Treatment 2

Error 20

Total 500 11

 

 

|Source |df |Sum of squares |Mean square |F |

|Treatments | 2 | 320 |160  | 8 |

|Error | 9 | 180 |20  |  |

|Total | 11 | 500 |  |  |

Complete the table and answer the following questions. Use the .05 significance level.

a. How many treatments are there?

2+1 = 3

b. What is the total sample size?

11+1 = 12

c. What is the critical value of F?

4.2565 (from a table)

d. Write out the null and alternate hypotheses.

H0: means are equal

Ha: means are not equal

e. What is your conclusion regarding the null hypothesis?

Since our F statistic (8) is greater than the critical value, we reject the null. The means are different.

 

CHAPTER 17

 

19. In a particular market there are three commercial television stations, each with its own

evening news program from 6:00 to 6:30 P.M. According to a report in this morning's local

newspaper, a random sample of 150 viewers last night revealed 53 watched the news

on WNAE (channel 5), 64 watched on WRRN (channel 11), and 33 on WSPD (channel 13).

At the .05 significance level, is there a difference in the proportion of viewers watching

the three channels?

H0: no difference between channels

Ha: difference between channels

 Df = n-1 = 3-1 = 2

The critical value, from a table, is 5.991

Chi square = (53-50)^2 /50 + (64-50)^2 /50 + (33-50)^2 /50 = 9.88

The statistic is much higher than the critical value, so we reject the null hypothesis. There is a difference between the channels.

20. There are four entrances to the Government Center Building in downtown Philadelphia.

The building maintenance supervisor would like to know if the entrances are equally utilized.

To investigate, 400 people were observed entering the building. The number using

each entrance is reported below. At the .01 significance level, is there a difference in the

use of the four entrances?

 

Entrance Frequency

 

Main Street 140

Broad Street 120

Cherry Street 90

Walnut Street 50

Total 400

H0: no difference between the entrances

Ha: difference between the entrances

 

Using a table (), the critical value is (df = N-1 = 3, alpha = 0.01):

11.345

So we reject the null for values greater than that.

 

The expected value for each entrance is 100, so get chi squared:

(140-100)^2/100 + (120-100)^2/100 + (90-100)^2/100 + (50-100)^2/100

= 46

 

The chi squared value is much higher than the critical value, so we reject the null hypothesis and conclude that there is a difference between the entrances.

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