STATISTICAL INFERENCE (CA: PRACTICE SESSION) WORKSHEET

*Draw inferences for the following situations:

1) Consider the testing regarding employee’s average age when they started getting the benefit of
double pension after retirement. Given that H0: µ ≥ 80 and H1: µ < 80. The sample of 100 retired
persons provided average age of 78.5. The population standard deviation is 12. Use α = 1%.

2) Consider the following hypothesis regarding average marks of students in exams; H0: µ ≤ 25 and
H1: µ > 25. The sample of 40 students provided average marks of 26.4. The population standard
deviation is 06. Use α = 0.01.

3) Consider the following hypothesis regarding average age of students when they got their
graduation degree; H0: µ = 22 and H1: µ ≠ 22. A sample of 75 students provided average age of
23. The population standard deviation is 10. Use α = 0.01.

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4) For the United States, the mean monthly Internet bill is $32.79 per household (CNBC, January 18,
2006). A sample of 50 households in a southern state showed a sample mean of $30.63. Use a
population standard deviation of $5.60. Formulate hypotheses for a test to determine whether the
sample data support the conclusion that the mean monthly Internet bill in the southern state is less
than the national mean of $32.79. At 1% level of significance, what is your conclusion?

5) A shareholders’ group, in lodging a protest, showed that the mean tenure for a chief executive
officer (CEO) was at least nine years consider as H0: µ ≥ 9.0 and H1: µ < 9.0. A survey of
companies reported in The Wall Street Journal found a sample mean tenure of 8.8 years for CEOs
with a standard deviation of 0.23 years (The Wall Street Journal, January 2, 2007). Assume 8
companies were included in the sample. Use α = 0.01.

6) Given the following hypothesis: H0: µ ≥ 20 and H1: µ < 20. A random sample of five resulted in
the following values: 18, 15, 12, 19, and 21. Assume a normal population. Using the 0.01
significance level, draw your conclusion.

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7) The amount of water consumed each day by a healthy adult follows a normal distribution with a
mean of 1.4 liters. A health campaign promotes the consumption of at least 2.0 liters per day. A
sample of 10 adults after the campaign shows the following consumption in liters: At the .01
significance level, can we conclude that water consumption has increased?
1.5 1.6 1.5 1.4 1.9 1.4 1.3 1.9 1.8 1.7

8) Watch Corporation of Switzerland claims that its watches on average will neither gain nor lose
time during a week. A sample of 18 watches provided the following gains (+) or losses (-) in
seconds per week. Is it reasonable to conclude that the mean gain or loss in time for the watches is
zero? Use the .05 significance level.

-0.38 -0.20 -0.38 -0.32 +0.32 -0.23 +0.30 +0.25 -0.10

9) Advertisements by Sylph Fitness Center claim that completing its course will result in losing
weight. A random sample of eight recent participants showed the following weights before and
after completing the course. At the .01 significance level, can we conclude the students lost
weight?
Name Before After
Hunter 155 154
Cashman 228 207
Mervine 141 147
Massa 162 157
Creola 211 196
Peterson 164 150
Redding 184 170
Poust 172 165
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10) The owner of Bun ‘N’ Run Hamburgers wishes to compare the sales per day at two locations. The
mean number sold for 10 randomly selected days at the Northside site was 83.55, and the standard
deviation was 10.50. For a random sample of 12 days at the Southside location, the mean number
sold was 78.80 and the standard deviation was 14.25. At the .05 significance level, is there a
difference in the mean number of hamburgers sold at the two locations?

11) Are nursing salaries in Tampa, Florida, lower than those in Dallas, Texas? Salary data show staff
nurses in Tampa earn less than staff nurses in Dallas (The Tampa Tribune, January 15, 2007).
Suppose that in a follow-up study of 40 staff nurses in Tampa and 50 staff nurses in Dallas you
obtain the following results.
Sample Tampa Dallas
Size 40 50
Mean $56,100 $59,400
S.d (s) $6000 $7000

Formulate hypothesis so that, if the null hypothesis is rejected, we can conclude that salaries for
staff nurses in Tampa are significantly lower than for those in Dallas. Use α = 5%.

12) Ms. Lisa Monnin is the budget director for Nexus Media Inc. She would like to compare the daily
travel expenses for the sales staff and the audit staff. She collected the following sample
information. At the .10 significance level, can she conclude that the mean daily expenses are
greater for the sales staff than the audit staff?

Sales ($) 131 135 146 165 136 142

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NAME: ___________________Roll no.__________________Degree Program______________