Q.

A survey of CPAs across the United State found that the average net income for sole proprietor CPAs is $74,914. Because this survey is now more than seven years old, an accounting researchers wants to test this figure by taking a random sample of 112 sole proprietor accountants in United State to determine whether the net income figure changed. Suppose the 112 CPAs who respond produce a sample mean of $78,695. The researcher could use steps of hypothesis testing to do so. Assume the population standard deviation of net incomes for sole proprietor CPAs is $14530. Q. According to the U.S. Bureau of Labor Statistics, the average weekly earnings of a production worker in 1997 were $424.20. Suppose a labor researcher wants to test to determine whether this figure is still accurate today. The researcher randomly selects 54 production workers from across the United States and obtains a representative earning statement for one week from each. The resulting sample average is $432.69, with a standard deviation of $33.90. Use these data and hypothesestesting techniques along with a 5% level of significance to determine whether the mean weekly earnings of a production worker have changed. Q. Atlas Sporting Goods has implemented a special trade promotion for its propane stove and feels that the promotion should result in a price change for the consumer. Atlas knows that before the promotion began, the average retail price of the stove was $44.95, and the standard deviation was $5.75. Atlas samples 25 of its retailers after the promotion begins and finds the mean price for the stoves is now $42.95. At a 0.02 significance level, does atlas have reason to believe that the average retail price to the consumer has decreased?

Q. Generally Electric has developed a new bulb whose design specifications call for a light output of 960 lumens compared to an earlier model that produced only 750 lumens. The company s data indicate that the standard deviation of light output for this type of bulb is 18.4 lumens. From a sample of 20 new bulbs, the testing committee found an average light output of 954 lumens per bulb. At 0.05 significance level, can Generally Electric conclude that its new bulb is producing the specified 960 lumen output? Q. Each day, the US Custom Service has historically intercepted about $28 million in contraband goods being smuggled into the country, with a standard deviation of $16 million per day. On 64 randomly chosen days in 1992, the US Customs Service intercepted an average of $30.3 million in contraband goods. Does this sample indicate (at 5% level of significance) that the Custom Commissioner should be concerned that smuggling has increased above its historic level? Q. The Manager of an automobile dealership is considering a new bonus plan designed to increa se sales volume. Currently, the mean sales volume is 14 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one month period. a. Develop the null and alternate hypotheses most appropriate for this research situation. b. Comment on the conclusion when H0 can t be rejected. c. Comment on the conclusion when H0 can be rejected.

Because of high production changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be implemented. The current production method operates with a mean cost of $ 220 per hour. A research study will measure the cost of the new method over a sample production period. a. Develop the null and alternate hypotheses most appropriate for this study. b. Comment on the conclusion when H0 can not be rejected. c. Comment on the conclusion when H0 can be rejected.