CLASSWORK 12

1. Test performed with a random sample of 40 diesel engines produced by a large manufacturer show
that they have a mean thermal efficiency of 31.4 with a standard deviation of 1.6. At the 0.01 level
of significance, test the null hypothesis  = 32.3 against alternative hypothesis   32.3

2. American Theaters knows that a certain hit movie ran an average of 84 days in each city, and the
corresponding standard deviation was 10 days. The manager of the southeastern district was
interested in comparing the movie’s popularity in his region with that in all of American’s other
theaters. He randomly chose 75 theaters in his region and found that they ran the movie an average
of 81.5 days.
a) State appropriate hypothesis for testing whether there was a significant difference in the length
of the picture’s run between theaters in the Southeastern district and all of American’s other
theaters.
b) At 1 percent significance level, test these hypotheses.

3. Maxwell’s hot chocolate is concerned about the effect of the recent year long coffee advertising
campaign sales. The average weekly hot chocolate sales two years ago was 984.7 pounds and the
standard deviation was 72.6 pounds. Maxell’s has randomly selected 39 weeks from the past year
and found average sales of 912.1 pounds.
a) State appropriate hypothesis for testing whether hot chocolate sales have decreased.
b) At the 2 percent significance level, test these hypotheses.

4. Suppose that we want to investigate whether on the average men earn more than women in a
certain industry. If a sample data show that the 60 men earn on an average $292.50 per week with
a SD $ 15.60, while 60 women earn on an average $266.10 per week with a SD $ 18.20, what can
we conclude at the 0.01 level of significance?

5. A manufacturer of submersible pumps claims that at most 30% of the pumps require repairs within
the first 5 years of operation. If a random sample of 120 of these pumps includes 47 which
required repairs within the first 5 years, what can we conclude about the claims of manufacturer at
the 0.05 level of significance?

6. In a random sample of 600 cars making a right turn at a certain intersection, 157 pulled into wrong
lane, Test the null hypothesis that actually 30% of all drivers make this mistake at the given
intersection at the 0.10 level of significance.

7. Rick Douglas, the new manager of food Barn, is interested in the percentage of customers who are
totally satisfied with the store. The previous manager had 86 percent of the customers totally
satisfied, and Rick claims the same is true today. Rick sampled 187 customers and found 157 were
totally satisfied. At the 1 percent significance level, is there evidence that Rick’s claim is valid?

8. Some financial theoreticians believe that the stock market’s daily prices constitute a “random walk
with positive drift”. If this is accurate, then the Dow Jones Industrial average should show a gain
on more than 50 percent of all trading days. If the average increased on 101 of 175 randomly
chosen days, what do you think about the suggested theory? use a 0.01 level of significance.

9. The owner of a machine shop must decide which of two snack-vending machines to install in his
shop. If each machine tested 250 times, the first machine fails to work (neither delivers the snack
nor returns the money) 13 times, and the second machine fails to work 7 times, test at the 0.05
level of significance whether the difference between the corresponding sample proportions is
significant.
10. Macro Swift estimated last year that 35 percent of potential software buyers were planning to wait
to purchase the new operating system, windowpanes, until an upgrade had been released. After an
advertising campaign to reassure the public, Macro swift surveyed 3,000 people and found 950
who were still skeptical. At the 5 percent significance level, can the company conclude the
proportion of skeptical people has decreased?

11. Two independent samples of observations were collected. For the first sample of 60 elements, the
mean was 86 and the standard deviation 6. The second sample of 75 elements had a mean of 82
and a standard deviation of 9.
a) Compute the estimated standard error of the difference between the two means. Using level of
significance 0.01, test whether the two samples can reasonably be considered to have come
from populations with the same mean.

12. Two research laboratories have independently produced drugs that provide relief to arthritis
sufferers. The first drug was tested on a group of 90 arthritis sufferers and produced an average of
8.5 hours of relief, and the sample standard deviation of 1.8 hours. The second drug was tested on
80 arthritis sufferers, producing an average of 7.9 hours of relief, and a sample standard deviation
of 2.1 hours. At the 0.05 level of significance, does the second drug, provide a significantly shorter
period of relief?

13. Two different areas of large eastern city are being considered as sites for day care centers. Of 200
households surveyed in one section, the proportion in which the mother worked full time was 0.52.
In another section, 40 % of the 150 households surveyed had mothers working at full time jobs. At
the 0.04 level of significance, is there a significant difference in the proportions of working
mothers in the two areas of the city?

14. A coal fired power plant is considering two different systems for pollution abatement .The first
system has reduced the emission of the pollutants to acceptable levels 68 percent of the time, as
determined from 200 air samples. The second, more expensive system has reduced the emission of
pollutants to acceptable levels 76 percent of the time, as determined from 250 air samples. If the
expensive system is significantly more effective than the inexpensive system in reducing pollutants
to acceptable levels, then the management of the power plant will install the expensive system.
Which system will be installed if management uses a significance level of 0.02 in making its
decision?