STA2204

Exercise 4 (Chapter 4 & 5)

1. A random sample of n = 2000 observations from a binomial population produced

r = 1238
(a) If your research hypothesis is that  is greater than 0.6, what should you choose for
your alternative hypothesis? Your null hypothesis?
(b) Does your alternative hypothesis in part (a) imply a one- or two-tailed statistical test?
(c) Do the data provide sufficient evidence to indicate that p is greater than 0.60? Test using
 = 0.05.
(Z = 1.734 Reject H0)

2. The service manager of an appliance sales company asserts that 6% of the appliances sold
are returned to the service department for repair under the warranty, and the sales
manager believes that this claim is too high. Test the service manager’s assertion at the
0.05 level of significance if 56 out of a random sample of 1000 appliance sales are
returned to the service department for repair under the warranty.
(Z = -0.533 Do not reject H0)

3. A publisher of a news magazine has found through past experience that 60% of its
subscribers renew their subscriptions. Because it was heading into a business recession,
the company decided to randomly select a small sample of subscribers and, via telephone
questioning to determine whether they planned to renew their subscriptions. One
hundred eight of a sample of 200 indicates that they planned to renew their subscriptions.
(a) If you want to detect whether the data provide sufficient evidence of a reduction in the
proportion of all subscribers who will renew, what will you choose for your alternative
hypothesis? Null hypothesis?
(b) Conduct the test using a 5% level of significance. State the results. (Z = -1.732 reject H0)
(c) How many subscribers would have to be included in the publisher’s sample in order to
estimate  to within 0.01, with 95% confidence?
(9220)

4. A coin is thrown 500 times and 267 heads are obtained. Test whether the coin is
unbiased, using a 10% significance level. (Z = 1.521 do not reject H0)

5. A drug company tested a new pain-relieving drug on a random sample of 100 headache
suffers. Of these, 75% said that their headache was relieved by the drug. With the
currently marketed drug, 65% of users say that their headache is relieved by it. Test, at
the 4% level, whether the new drug will have a greater proportion of satisfied users.
(Z = 2.097 reject H0)

6. A study was made of the number of gallons of gasoline purchased by customers for their
automobiles at two gasoline stations. If 35 randomly selected purchases made in station
A average 9.6 gallons with standard deviation of 1.75, and 51 randomly selected sales at
station B average 8.3 gallons with a standard deviation of 2.18, test at the level of
significance 0.01, whether the difference between these two sample means is significant.
(Z = 3.06 reject H0)
7. To collect information for a water conservation drive on a college campus, sample data
are collected which show that 50 showers taken by students in dormitory A used, on the
average, 36 gallons of water with standard deviation of 2.5 gallons, while 50 showers
 taken by students in dormitory B used, on the average, 35.5 gallons of water with
standard deviation of 2.3 gallons. Test whether students in dormitory A use more water
than dormitory B at  = 5%. ( Z =-1.041 do not reject
H 0)

8. Following is a random sample of grades achieved on a statistics examination by nine men

students in a very large class and a random sample of grades achieved in the same
examination by six women students:
Men students: 79 88 64 91 83 66 89 74 68
Women students: 70 51 82 72 90 61
Use the level of significance of 1% to test whether the difference between the means of
these two samples is significant. (t = 1.112 Do not reject H0)

9. The management of Discount Furniture, a chain of discount furniture stores in Nilai,

designed an incentive plan for salespeople. To evaluate this innovative plan, 12
salespeople were selected at random, and their weekly incomes before and after the plan
were recorded.
Weekly income Weekly income
Salesperso Before After Salesperso Before After
n n
Tan C W RM320 RM340 Khoo K C RM625 RM631
Lee M Y 290 285 Chong C S 560 560
Khoo W L 421 475 Chuah C S 360 365
Leong S S 510 510 Toh Y H 431 431
Lee C C 210 210 Kan K M 506 525
Chan K L 402 500 Mong Y K 505 619
Was there a significant increase in the salesperson’s income due to the innovative
incentive plan? Use the 0.05 significance level to test the doubt. (t = 2.20 reject H0)

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