1. A sample of 64 observations is selected from a normal population.

The sample mean is 215,

and the population standard deviation is 15. Conduct the following test of hypothesis using
the .03 significance level.
H0: μ ≤ 220
H1: μ ≥ 220

2. The research department at the home office of New Hampshire Insurance conducts ongoing
research on the causes of automobile accidents, the characteristics of the drivers, and so on.
A random sample of 400 policies written on single persons revealed 120 had at least one
accident in the previous three-year period. Similarly, a sample of 600 policies written on
married persons revealed that 150 had been in at least one accident. At the .05 significance
level, is there a significant difference in the proportions of single and married persons
having an accident during a three-year period? Determine the p-value.

3. A real estate developer is considering investing in a shopping mall on the outskirts of

Atlanta, Georgia. Three parcels of land are being evaluated. Of particular importance is the
income in the area surrounding the proposed mall. A random sample of four families is
selected near each proposed mall. Following are the sample results. At the 0.05 significance
level, can the developer conclude there is a difference in the mean income? Use the usual
five-step hypothesis testing procedure. (develop ANOVA table SS, df, MS, F)
Southwyck Area ($000) Franklin Park ($000) Old Orchard ($000)
64 74 75
68 71 80
70 69 76
60 70 78

4. The production department of Celltronics International wants to explore the relationship

between the number of employees who assemble a subassembly and the number produced.
As an experiment, two employees were assigned to assemble the subassemblies. They
produced 15 during a one-hour period. Then four employees assembled them. They
produced 25 during a one-hour period. The complete set of paired observations follows.

The dependent variable is production; that is, it is assumed that different levels of
production result from a different number of employees.
a) Draw a scatter diagram.
b) Based on the scatter diagram, does there appear to be any relationship between the
number of assemblers and production? Explain.
c) Compute the correlation coefficient.
1. A sample of 36 observations is selected from a normal population. The sample mean is 21,
and the population standard deviation is 5. Conduct the following test of hypothesis using
the .05 significance level.
H0: μ ≤ 20
H1: μ ≥ 20

2. The Damon family owns a large grape vineyard in western New York along Lake Erie. The
grapevines must be sprayed at the beginning of the growing season to protect against
various insects and diseases. Two new insecticides have just been marketed: Pernod 5 and
Action. To test their effectiveness, three long rows were selected and sprayed with Pernod 5,
and three others were sprayed with Action. When the grapes mripened, 400 of the vines
treated with Pernod 5 were checked for infestation. Likewise, a sample of 400 vines sprayed
with Action were checked. The results are:
Insecticide Number of Vines Checked Number of Infested Vines
(sample size)
Pernod 5 350 25
Action 350 42
At the 0.05 significance level, can we conclude that there is a difference in the proportion of
vines infested using Pernod 5 as opposed to Action?

3. The manager of a computer software company wishes to study the number of hours senior
executives by type of industry spend at their desktop computers. The manager selected a
sample of five executives from each of three industries. At the 0.05 significance level, can she
conclude there is a difference in the mean number of hours spent per week by industry?

4. The production department of Celltronics International wants to explore the relationship

between the number of employees who assemble a subassembly and the number produced.
As an experiment, two employees were assigned to assemble the subassemblies. They
produced 15 during a one-hour period. Then four employees assembled them. They
produced 25 during a one-hour period. The complete set of paired observations follows.

The dependent variable is production; that is, it is assumed that different levels of
production result from a different number of employees.
a) Draw a scatter diagram.
b) Based on the scatter diagram, does there appear to be any relationship between the
number of assemblers and production? Explain.
c) Compute the correlation coefficient.
1. A sample of 36 observations is selected from a normal population. The sample mean is 12,
and the population standard deviation is 3. Conduct the following test of hypothesis using
the .02 significance level. H0: μ ≤ 20
H1: μ > 20

2. The null and alternate hypotheses are: H0: π1 = π2

H1: π1 ≠ π2
A sample of 200 observations from the first population indicated that X1 is 170. A sample of
150 observations from the second population revealed X2 to be 110. Use the 0.05
significance level to test the hypothesis.
a. State the decision rule.
b. Compute the pooled proportion.
c. Compute the value of the test statistic.
d. What is your decision regarding the null hypothesis?

3. A real estate developer is considering investing in a shopping mall on the outskirts of

Atlanta, Georgia. Three parcels of land are being evaluated. Of particular importance is the
income in the area surrounding the proposed mall. A random sample of four families is
selected near each proposed mall. Following are the sample results. At the 0.05 significance
level, can the developer conclude there is a difference in the mean income? Use the usual
five-step hypothesis testing procedure. . (develop ANOVA table SS, df, MS, F)
Southwyck Area ($000) Franklin Park ($000) Old Orchard ($000)
65 73 76
67 72 82
71 68 78
62 73 80
4. Bi-lo Appliance Super-Store has outlets in several large metropolitan areas in New England.
The general sales manager aired a commercial for a digital camera on selected local TV
stations prior to a sale starting on Saturday and ending Sunday. She obtained the
information for Saturday–Sunday digital camera sales at the various outlets and paired it
with the number of times the advertisement was shown on the local TV stations. The
purpose is to find whether there is any relationship between the number of times the
advertisement was aired and digital camera sales. The pairings are:

a. What is the dependent variable?

b. Draw a scatter diagram.
c. Determine the correlation coefficient.
d. Interpret these statistical measures.