FAT 1 Ver.

A Marking Guide

Time allowed: 45 minutes.

Total Marks: 22 marks (Convert into 100% and enter on Moodle Grade Book)
The test is closed-book and only calculators are permitted.
Relevant formulae and statistical tables are supplied at the end of the test paper.

Question 1 [2 + 3 = 5 marks]

A particular chain of mobile coffee carts is interested in the length of time that a customer waits for
their drink and finds the mean length of time is 10.32 minutes with a standard deviation of 4.65
minutes. Assume that the length of time spent waiting for a drink from a mobile coffee cart follows
an approximately normal distribution.

a) A random sample of 47 customers was taken and the average length of time spent waiting for
a drink from the mobile coffee cart was calculated. To 3 decimal places, what is the probability
that the sample mean length of time waiting for their drink was less than 10 minutes? Show
all working including the Excel function used. A diagram may also be helpful.

X is the length of time a customer waits for their drink (minutes)

𝟒.𝟔𝟓𝟐
𝑿~𝑵 (𝟏𝟎. 𝟑𝟐, 𝟒𝟕
)

𝑷(𝑿 < 𝟏𝟎) = /0.5

𝑿−𝝁 𝟏𝟎−𝟏𝟎.𝟑𝟐
𝑷 (𝒁 < ) = 𝑷 (𝒁 < ) = 𝑷(𝒁 < −𝟎. 𝟒𝟕) = /0.5 = NORM.S.DIST(-0.47,true) /0.5
√𝝈𝟐 ⁄𝒏 √𝟒.𝟔𝟓𝟐⁄𝟒𝟕

OR

NORM.DIST(10,10.32,4.65/√𝟒𝟕, true) /1

= 𝟎. 𝟑𝟏𝟗 /0.5

2 marks total
b) While they were waiting for their coffee, the same 47 randomly sampled customers were
asked how far they had travelled from their home to the coffee cart. A mean distance travelled
of 4.9 km and standard deviation of 1.67 km were calculated from the sample. Assume
distances travelled from home to the coffee cart are normally distributed. Calculate a 95%
confidence interval estimate of the average distance all customers travel from home to the
coffee cart. Show all steps in your calculation and give the lower and upper limits to two
decimal places.

X is the distance a customer travels from their home to the coffee cart (km) 𝑿~𝑵(𝝁, 𝝈𝟐 )

𝒕𝜶⁄𝟐,𝒏−𝟏 = 𝒕𝟎.𝟎𝟓⁄𝟐,𝟒𝟕−𝟏 = 𝟐. 𝟎𝟏𝟑 /1

𝒔 𝒔 𝟏.𝟔𝟕 𝟏.𝟔𝟕
𝑿 − 𝒕𝜶⁄𝟐,𝒏−𝟏 < 𝝁 < 𝑿 + 𝒕𝜶⁄𝟐,𝒏−𝟏 = 𝟒. 𝟗 − 𝟐. 𝟎𝟏𝟑 < 𝝁 < 𝟒. 𝟗 + 𝟐. 𝟎𝟏𝟑 /0.5
√𝒏 √𝒏 √𝟒𝟕 √𝟒𝟕

= 𝟒. 𝟗 − 𝟎. 𝟒𝟗 < 𝝁 < 𝟒. 𝟗 + 𝟎. 𝟒𝟗 /0.5

= 𝟒. 𝟒𝟏 < 𝝁 < 𝟓. 𝟑𝟗 /0.5 each

3 marks total
Question 2 [1 + 2 + 6 = 9 marks]

A supermarket manager is interested in customer transactions to assist with budgeting as well as

product placement throughout the store. Of particular interest to the manager is how long the
customer spends in the store and whether the customer uses a self-service register for their
transaction. Data has been collected from 50 customers and is provided in the file FAT 1 Version A
data.xlsx.

a) Use Linear Regression in Excel to state the 95% confidence interval for the proportion of all
customers who use a self-service register.

SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.648074
R Square 0.42
Adjusted R Square 0.399592
Standard Error 0.498569
Observations 50

ANOVA
Significance
df SS MS F F
Regression 1 8.82 8.82 35.48276 2.91906E-07
Residual 49 12.18 0.248571
Total 50 21

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept 0 #N/A #N/A #N/A #N/A #N/A
Proportion 0.42 0.070508358 5.956741 2.73E-07 0.278308149 0.561691851

Lower limit = 0.278 Upper limit = 0.562

(0.5 mark each – 1 mark total)

b) Interpret the confidence interval stated in part a)

We are 95% confident /0.5 that the proportion of all customers (true/population proportion) /0.5
who use a self-service register /0.5 lies between 27.8% and 56.2% /0.5.

2 marks total

The supermarket manager is also interested to know if there is a difference in average shopping time
for customers using the self-serve register and those using an assisted register.
 c) Use Linear Regression in Excel to conduct a hypothesis test at the 1% level of significance to
determine if the shopping time is the same for customers using self-serve and assisted
registers.

SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.220594
R Square 0.048662
Adjusted R Square 0.028842
Standard Error 6.052803
Observations 50

ANOVA
df SS MS F Significance F
Regression 1 89.95155993 89.95156 2.455249 0.123702147
Residual 48 1758.54844 36.63643
Total 49 1848.5

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 14.24138 1.123977326 12.67052 6.35E-17 11.98147143 16.50128719
Self-serve -2.71757 1.734334666 -1.56692 0.123702 -6.204683348 0.769543775

1. Hypotheses: 2. Significance level:

𝑯𝟎 : 𝜷𝟏 = 𝟎 OR 𝑯𝟎 : 𝝁𝒔𝒆𝒍𝒇−𝒔𝒆𝒓𝒗𝒆 = 𝝁𝒂𝒔𝒔𝒊𝒔𝒕𝒆𝒅 𝜶 = 𝟎. 𝟎𝟏 /0.5

𝑯𝟏 : 𝜷𝟏 ≠ 𝟎 𝑯𝟏 : 𝝁𝒔𝒆𝒍𝒇−𝒔𝒆𝒓𝒗𝒆 ≠ 𝝁𝒂𝒔𝒔𝒊𝒔𝒕𝒆𝒅 /0.5 mark each

3. Test statistic and Critical value: 3. P-value:

Test statistic = -1.567 /0.5 OR P-value = 0.1237 /1.5

Critical value = 𝒕𝜶⁄𝟐,𝒏−𝟏−𝟏 = 𝒕𝟎.𝟎𝟏⁄𝟐,𝟓𝟎−𝟏−𝟏 = 𝟐. 𝟔𝟖𝟐 /1

4. Decision and Conclusion:

Reject 𝑯𝟎 if t stat > t crit or t stat < -t crit /1 OR Reject 𝑯𝟎 if p-value < 𝜶 /1

Since -2.682 < -1.567 < 2.682 /0.5 Since 0.1237 > 0.01 /0.5

We cannot reject 𝑯𝟎 /0.5 We cannot reject 𝑯𝟎 /0.5

We conclude that shopping time is the same for customers using self-serve and assisted registers
/1

6 marks total
Question 3 [6 + 2 = 8 marks]

The manager of a golf club is concerned about the length of time which some groups of players take
to complete 18 holes of golf. The manager samples 24 groups, each consisting of four players, and
finds the sample mean and standard deviation to be 251 minutes and 32.3 minutes respectively.
Assume the length of time taken for a group of four players to complete 18 holes of golf is normally
distributed.

a) Test to determine whether the mean length of time for all groups of four golfers to complete
18 holes is less than 265 minutes at the 10% level of significance.

X is the time taken for a group of four golfers to complete 18 holes of golf (minutes)

𝑿~𝑵(𝝁, 𝝈𝟐 )

1. Hypotheses: 2. Significance level: 3. Test statistic and Critical value:

𝑿−𝝁 𝟐𝟓𝟏−𝟐𝟔𝟓
𝑯𝟎 : 𝝁 = 𝟐𝟔𝟓 𝜶 = 𝟎. 𝟏𝟎 /0.5 t test statistic = = 𝟑𝟐.𝟑⁄ = −𝟐. 𝟏𝟐𝟑
𝒔𝒙
√𝟐𝟒

𝑯𝟏 : 𝝁 < 𝟐𝟔𝟓 (0.5 mark for substitution and 0.5 mark for value)

/0.5 mark each Critical value = 𝒕𝜶,𝒏−𝟏 = 𝒕𝟎.𝟏𝟎,𝟐𝟒−𝟏 = −𝟏. 𝟑𝟏𝟗 /1

4. Decision and Conclusion:

Reject 𝑯𝟎 if t stat < -t crit /0.5 We conclude that the mean length of time for all

Since -2.123 < -1.319 /0.5 groups of four golfers to complete 18 holes is

We can reject 𝑯𝟎 /0.5 significantly less than 265 minutes. /1

6 marks total

b) What is a Type I Error in the context of this hypothesis test?

A Type I Error is rejecting 𝑯𝟎 when 𝑯𝟎 is in fact true. /1

In the context of this hypothesis test that would be concluding that the mean length of time for all
groups of four golfers to complete 18 holes is less than 265 minutes when in fact it is 265 minutes.
/1

2 marks total