Homework 5

Homework 5
Part I
1. If you use a 0.05 level of significance in a two-tail hypothesis test, what decision will you
make if ZSTAT = -0.76?
2. The quality-control manager at a light bulb factory needs to determine whether the mean
life of a large shipment of light bulbs is equal to 375 hours. The population standard
deviation is 100 hours. A random sample of 64 light bulbs indicates a sample mean life of
350 hours.
a. At the 0.05 level of significance, is there evidence that the mean life is different from 375
hours?
b. Compute the p-value and interpret its meaning.
c. Construct a 95% confidence interval estimate of the population mean life of the light
bulbs.
d. Compare the results of (a) and (c). What conclusions do you reach?
3. If, in a sample of n = 16 selected from a left-skewed population, X́ =65, and S = 21, would
you use the t test to test the null hypothesis H 0 :μ=60 ? Discuss.
4. You are the manager of a restaurant for a fast-food franchise. Last month, the mean
waiting time at the drive-through window for branches in your geographic region, as
measured from the time a customer places an order until the time the customer receives
the order, was 3.7 minutes. You select a random sample of 64 orders. The sample mean
waiting time is 3.57 minutes, with a sample standard deviation of 0.8 minute.
a. At the 0.05 level of significance, is there evidence that the population mean waiting time
is different from 3.7 minutes?
b. Because the sample size is 64, do you need to be concerned about the shape of the
population distribution when conducting the t test in (a)? Explain.
5. A stationary store wants to estimate the mean retail value of greeting cards that it has in
its inventory. A random sample of 100 greeting cards indicates a mean value of $2.55 and a
standard deviation of $0.44.
a. Is there evidence that the population mean retail value of the greeting cards is different
from $2.50? (Use a 0.05 level of significance)
b. Determine the p-value and interpret its meaning
Part II
1. In a one-tail hypothesis test where you reject H0 only in the upper tail, what is the p-value
if ZSTAT = +2.00?
2. Southside Hospital in Bay Shore, New York, commonly conducts stress tests to study the
heart muscle after a person has a heart attack. Members of the diagnostic imaging
department conducted a quality improvement project with the objective of reducing the
turnaround time for stress tests. Turnaround time is defined as the time from when a test is
ordered to when the radiologist signs off on the test results. Initially, the mean turnaround
time for a stress test was 68 hours. After incorporating changes into the stress-test process,
the quality improvement team collected a sample of 50 was 32 hours, with a standard
deviation of 9 hours.
a. If you test the null hypothesis at the 0.01 level of significance, is there evidence that the
new process has reduced turnaround time?
b. Interpret the meaning of the p-value in this problem.
3. If a random sample of 400 items, 88 are defective, what is the sample proportion of
defective items? Suppose you are testing the null hypothesis H0: π=0.20 against the two tail
alternative hypothesis H1: π ≠ 0.20 and you choose the level of significance α =0.05. What is
your statistical decision?
4. A cellphone provider has the business objective of wanting to estimate the proportion of
subscribers who would upgrade to a new cellphone with improved features if it were made
available at a substantially reduced cost. Data are collected from a random sample of 500
subscribers. The results indicate that 135 of the subscribers would upgrade to a new
cellphone at a reduced cost.
a. At the 0.05 level of significance, is there evidence that more than 20% of the customers
would upgrade to a new cellphone at a reduced cost?
b. How would the manager in charge of promotional programs concerning residential
customers use the results in (a)?
5. In hypothesis testing, the common level of significance is α =0.05. Some might argue for a
level of significance greater than 0.05. Suppose that web designers tested the proportion of
potential web page visitors with a preference for a new web design over the existing web
design. The null hypothesis was that the population proportion of web page visitors
preferring the new design was 0.50, and the alternative hypothesis was that it was not equal
to 0.50. The p-value for the test was 0.20.
a. State, in statistical terms, the null and alternative hypothesis for the example.
b. Explain the risks associated with Type I and Type II errors in this case.
c. What would be the consequences if you rejected the null hypothesis for a p-value of 0.20?
d. What might be an argument for raising the value of α?
e. What would you do in this situation?
f. What is your answer in (e) if the p-value equals 0.12? What if it equals 0.06?

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