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The manufacturer of an MP3 player wanted to know whether a 10 percent reduction in price is enough
to increase the sales of its product. To investigate, the owner randomly selected eight outlets and sold
the MP3 player at the reduced price. At seven randomly selected outlets, the MP3 player was sold at
the regular price. Reported below is the number of units sold last month at the sampled outlets.
Reduced price 122 131 152 130 117 109 119 112
At the .050 significance level, can the manufacturer conclude that the price reduction resulted in an
increase in sales? Hint: For the calculations, assume the Reduced price as the first sample.
Ans.
Test Statistic
X (Mean)=119.286Standard Deviation (s.d1)=20.799
Number(n1)=7
Y (Mean)=124Standard Deviation(s.d2)=13.71
Number(n2)=8
Value of Combined Standard deviation is S= (n1-1*s1^2 + n2-1*s2^2 )/(n1+n2-2)
S^2 = (6*432.598 + 7*187.964) / (15- 2 )
S^2 = 300.872
we use Test Statistic (t) = (X-Y)/Sqrt(S^2(1/n1+1/n2))
to=119.286-124/Sqrt((300.872 )* (1/7)+(1/8))
to=-4.714/8.977
to=-0.525
ANS
Pooled Variance = 300.87
Test-statistic = - 0.52
Q43
Let X be normal random variable with mean 12 and variance 4. Find the value of c such that P(X > c) = 0.10
The Engineering Department at Sims Software Inc. recently developed two chemical solutions designed
to increase the usable life of computer disks. A sample of disks treated with the first solution lasted 86,
78, 66, 83, 84, 81, 84, 109, 65, and 102 hours. Those treated with the second solution lasted 91, 71, 75,
76, 87, 79, 73, 76, 79, 78, 87, 90, 76, and 72 hours. Assume the population standard deviations are not
the same.
At the .10 significance level, can we conclude that there is a difference in the length of time the two
types of treatment lasted?
1. The degrees of freedom is . (Round down your answer to nearest whole number.)
2.
Reject H0 if t < or t > (Negative amounts should be indicated by a minus sign. Round your answers to 3
decimal places.).
1. The degrees of freedom is . (Round down your answer to nearest whole number.)???
2. Reject H0 if t < or t > (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.).
FIRST WAY:
The Value of |t α| with Min (n1-1, n2-1) i.e 9 d.f is 2.262 i.e Reject H0 if t > 2.262 or t < -2.262
SECOND WAY:
The Value of |t α| with (n1+n2-2) i.e 22 d.f is 2.074 i.e Reject H0 if t > 2.074 or t < -2.074
Q39
The American Water Works Association reports that the per capita water use in a single-family home I
69 gallons per day. Legacy Ranch is a relatively new housing development. The builders installed more
efficient water fixtures, such as low-flush toilets, and subsequently conducted a survey of the
residences. Thirty-six owners responded, and the sample mean water use per day was 64 gallons with a
standard deviation of 8.8 gallons per day.
At the .10 level of significance, is that enough evidence to conclude that residents of Legacy Ranch use
less water on average?
a.
What is the decision rule? (Negative amount should be indicated by a minus sign. Round your answer to
3 decimal places.)
Ans.
a. Reject H0 : μ ≥ 69 and fail to reject H1 : μ < 69 when the test statistic is Rejected, when to > 1.306 or t < -1.306
b.
Test Statistic
Population Mean(U)=69
Sample X(Mean)=64
Standard Deviation(S.D)=8.8
Number (n)=36
we use Test Statistic (t) = x-U/(s.d/Sqrt(n))
to =64-69/(8.8/Sqrt(35))
to =-3.409
c.
Make Decision
Hence Value of | to | > | t α| and Here we Reject Ho
Q38
Most air travelers now use e-tickets. Electronic ticketing allows passengers to not worry about a paper
ticket, and it costs the airline companies less to handle than paper ticketing. However, in recent times
the airlines have received complaints from passengers regarding their e-tickets, particularly when
connecting flights and a change of airlines were involved. To investigate the problem, an independent
watchdog agency contacted a random sample of 20 airports and collected information on the number
of complaints the airport had with e-tickets for the month of March. The information is reported below.
14 14 16 12 12 14 13 16 15 14
12 15 15 14 13 13 12 13 10 13
At the .05 significance level, can the watchdog agency conclude the mean number of complaints per
airport is less than 15 per month? Conduct a test of hypothesis and interpret the results.
c-1. What is the decision rule? (Negative amount should be indicated by a minus sign. Round your
answer to 3 decimal places.)
c-2. Compute the value of the test statistic. (Negative amount should be indicated by a minus sign.
Round your answer to 2 decimal places.)
Ans.
b. Reject H0 : μ > 15 and fail to reject H1 : μ < 15 when the test statistic is Rejected, when to > 1.729or t < - 1.729
c. Test Statistic
Population Mean(U)=15
Sample X(Mean)=13.5
Standard Deviation(S.D)=1.504
Number (n)=20
we use Test Statistic (t) = x-U/(s.d/Sqrt(n))
to =13.5-15/(1.504/Sqrt(19))
to =-4.46