10.8 Do private school students obtain higher marks than public school students?

To evaluate
this question we collected a sample of Australian Tertiary Admission Rank (ATAR) data from
2014. We obtained a mean ATAR of 76.5 with a standard deviation of 12 from a sample of 54
private school students. A sample of 32 public school students had an average ATAR of 74.7
and standard deviation of 10.

Using the 0.01 level of significance, is there sufficient evidence that private school students
obtain a higher ATAR than public school students?

H0 : µ1≤ µ2

H1 : µ1> µ2 crit value= (54+32)-2=84

We have a sample of private schools and public schools so t =2.3716 as a critical value

S2P= [(53*12^2)+(31*10^2)]/ (53+31) = 10732/84=127.76

T=(76.5-74.7)/ √[(127.76*(1/54+1/32)]= 1.8/2.5215 =0.71

Do not reject h0

10.10 Do people in the Campbelltown area pay higher petrol prices than those in the rest of
Sydney? Data reported by Valadkhani (Energy Economics, 39, September 2013, 66–80) show
a mean petrol price of 140.1c per litre and standard deviation of 12.1 for Campbelltown from
a sample of 223 weeks of data between 29 October 2007 and 30 January 2012. Over the same
period average petrol prices in the rest of Sydney were 131.4c per litre with a standard
deviation of 12.7. Conduct a pooled-variance t test for the difference between the two
locations. Use a level of significance of 0.05

H0 : µ1= µ2

H1 : µ1≠ µ2

Df=223*2=446-2 =444 critical value =+/-1.9600

S2P= [(222*12.1^2)+(222*12.7^2)]/444=153.85

T=(140.1-131.4)/ √[153.85*(1/223+1/223)]= 7.40 reject H0

10.13 The Commercial Bank of Singapore (CBS) advertises that ‘our customers come first’
and claims that the waiting time for its customer inquiries is the lowest. A sample of 34 of its
customers waited an average of 8 minutes with a standard deviation of 2.5 compared to an
average of 9.5 minutes and standard deviation of 5 from a sample of 45 customers at
competitors’ branches.

a. Assuming that the population variances from CBS and its competitors are equal, is there
sufficient evidence that the mean waiting time at CBS is lower? (Use α = 0.05.)

b. Assuming that the population variances from CBS and its competitors are equal, construct
and interpret a 95% confidence interval estimate of the difference between the population
means.

a.

H0 : µ1≥ µ2

H1 : µ1< µ2 crit value=79-2=77=-1.6649 or <-1.6649

S2P=[33*2.5^2+44*5^2]/(33+44)=16.9642

T=(8-9.5)/√[16.9642*(1/34+1/45)]=-1.60 don’t reject h0

b.

(8-9.5)+/- 1.9913 √[16.9642(1/34+1/45)] =-1.5- 1.8636=-3.3636; -1.5+ 1.86336=0.3636;

-3.3636 ≤μ1 − μ2≤0.3636

you are 95% confident that the difference between CBS and competitor is between -3.3636 and
0.3636. From a hypothesis-testing perspective, because the interval does include zero (as per H0),
you do not reject the null hypothesis of no difference between the means of the two populations.
10.15 A problem with a phone line, which is preventing a customer from receiving or making
calls, is upsetting to both the customer and the telecommunications company. The file <
PHONE > contains samples of 20 problems reported to two different offices of a
telecommunications company and the time to clear these problems (in minutes) from the
customers’ lines:

Central Office I time to clear problems (minutes) 1.48 1.75 0.78 2.85 0.52 1.60 4.15 3.97 1.48
3.10 1.02 0.53 0.93 1.60 0.80 1.05 6.32 3.93 5.45 0.97

Central Office II time to clear problems (minutes) 7.55 3.75 0.10 1.10 0.60 0.52 3.30 2.10
0.58 4.02 3.75 0.65 1.92 0.60 1.53 4.23 0.08 1.48 1.65 0.72

a. Assuming that the population variances from both offices are equal, is there sufficient
evidence of a difference in the mean waiting time between the two offices? (Use α = 0.05.)

b. Assuming the population variances from both offices are equal, construct and interpret a
95% confidence interval estimate of the difference between the population means in the two
offices

mean 2,214 2,0115

2,95165
variance 7 3,57855
1,71803 1,89170
SD 9 6

a. H0 : µ1=µ2

H1 : µ1≠µ2

Critical value -2.0244 and +2.0244

S2P= (19*2,951657)+(19*3,57855)/38 = 3.265

T= ( 2.21-2.01)/√[3.2659*(1/20+1/20)] =0.35 do not reject h0 no difference

2. 0.20 + 2.0244*√[3.2659*(1/20+1/20)]= 1.3569

0.20-2.0244 *√[3.2659*(1/20+1/20)]= -0.9569

-0.9569 ≤μ1 − μ2≤ 1.3569 is included in the interval do not reject H0 we are 99% confident
that the population means is comprise between-0.9569 and 1.3569. since 0 is included in the
interval, there is no difference so you shouldn’t reject h0
10.22 Travel expenses paid by companies can increase or decrease dramatically when there are
changes in the daily rates for hotel rooms. Did these rates stay the same from 2011 to 2015? Assume
that the following data < HOTEL_PRICE2 > give typical daily rates in Australian dollars for hotels in 18
cities during 2011 and 2015.

a. At the 0.05 level of significance, is there sufficient evidence of a difference in the mean daily
hotel rate where μ1 = 2015 rate and μ2 = 2011 rate?
H0: μD = 0
H1: μD ≠ 0
Critical values -2.1098 ; 2.1098
See excel
b. What assumption is necessary to perform this test?
you assume that the difference scores are randomly and independently selected from a
population that is normally distributed. Both sample are superior to 30.
c. Construct and interpret a 95% confidence interval estimate
10.25 Most motorists believe that petrol stations put prices up on public holidays. A motorist
advocacy group collected petrol price data for a sample of petrol stations on the Thursday before a
public holiday and the Friday of the public holiday (measured in cents per litre). < PUBLIC_HOLIDAY >

a. At the 0.01 level of significance, is there sufficient evidence that the mean price of petrol is
more expensive on a public holiday?
H0 : μD<0
H1 : μD≥0 critical value 2.8214

10.26 Does playing Lumosity increase one’s IQ? We collected IQ scores for a sample of 7 individuals
before and after a 30-day trial of Lumosity. < LUMOSITY >

a. At the 0.01 level of significance, is there sufficient evidence that the mean IQ has increased?

H0 : μD<0

H1 : μD≥0 critical value 3.1427

10.37 A bank with a branch located in a commercial district of a city < BANK1 > has developed an
improved process for serving customers during the noon to 1 pm lunch period. The waiting time
(defined as the time elapsed from when the customer enters the line until they reach the teller
window) of all customers during this hour is recorded over a period of one week.

A random sample of 15 customers is selected and the results (in minutes) are:

4.21 5.55 3.02 5.13 4.77 2.34 3.54 3.20 4.50 6.10 0.38 5.12 6.46 6.19 3.79

Suppose that another branch located in a residential area < BANK2 > is also concerned about the
noon to 1 pm lunch period. A random sample of 15 customers is selected and the results are as
follows:

9.66 5.90 8.02 5.79 8.73 3.82 8.01 8.35 10.49 6.68 5.64 4.08 6.17 9.91 5.47

a. Is there sufficient evidence of a difference in the variability of the waiting time between the
two branches? (Use α = 0.05.)
b. What assumption is necessary in (a)? Is the assumption valid for these data?
a. H0: σ1 2 – σ2 2 = 0
H1: σ1 2 – σ2 2 ≠ 0
Critical value (1/2.95) and 2.95 F= 2.68/4.33=0.61 do not reject H0 no differnece in
variability.
b. In testing for a difference in two variances using the F test, you assume that each of the
two populations is normally distributed. The F test is very sensitive to the normality
assumption. Yes since both sample are equal to 30.
c. Based on the results of (a), is it appropriate to use the pooledvariance t test to compare
the means of the two branches?
The sample should be at least 30 and the population should be normally distributed . we
are in such a situation so we can used pooled t.

10.42 A human resources manager is trying to reduce the percentage of employees resigning
at the organisation’s two factories in Brisbane and Christchurch. She implements an employee
loyalty scheme at the Christchurch factory in which employees receive a financial bonus for
staying at the factory for over five years. Over the next 12-month period, 12 out of 345
employees resign at the Christchurch factory, compared to 32 out of 890 employees in
Brisbane.

a. At the 0.01 level of significance, is there sufficient evidence that the percentage of
employees resigning in Christchurch is lower than that of Brisbane?

b. Construct and interpret a 99% confidence interval estimate of the difference between the
population proportions for the factories.
a. H0 : π1 - π2 ≥ 0

H1 : π1 - π2 < 0

Z<-2.33 pbar=(12 +32)/(345+890) =54/1235 z= [(12/345)-(32/890)]/ √[(54/1235)(1-(54/1235))

[(1/345)+(1/890)]]=-0.001172/0.0129=-0.0908 do not reject h0

b.[(12/345)-(32/890)] +/-2.33[ √ [(12/345)(333/345)]/345]+√[(32/890)(858/890)]/890]]

-0.001172+0.0375=0.0363
-0.001172-0.0375=-0.0386
We are 99% confident that the difference between the population proportion
between brisbane and christchurchis between -0.0386 and 0.0363.

10.43 One of the most impressive, innovative advances in online fundraising over the past
decade is the rise of crowdfunding websites. While features differ from site to site,
crowdfunding sites are websites that allow you to set up an online fundraising campaign
based around a fundraising page and accept money directly from that page using the website’s
own credit card processor. Kickstarter, one crowdfunding website, reported that 316 of 831
technology crowdfunding projects were successfully launched in the past year and 923 of
2,796 games crowdfunding projects were successfully launched in the past year (data obtained
from ).

a. Is there sufficient evidence of a significant difference in the proportion of technology

crowdfunding projects and games crowdfunding projects that were successful at the 0.05 level
of significance?

H0 : π1 - π2 = 0

H1 : π1 - π2 ≠ 0 critical value -1.96 ; 1.96

Pbar=(316 +923)/(831+2796)=1239/3627=0.3416

Z=[(316/831)-(923/2796)] /√[(1239/3627)(2388/3627)
(1/831+1/2796)]=0.0501/0.01873=2.673

Reject h0

b. Determine the p-value in (a) and interpret its meaning. 0.0038*2=0.0076 rej h0
c. Construct and interpret a 95% confidence interval estimate for the difference between the
proportion of technology crowdfunding projects and games crowdfunding projects that are
successful

[(316/831)-(923/2796)]+/- 1.96*√[[(316/831)(515/831)]/831]+
√[(923/2796)(1873/2796)]/2796]= 0.0501+0.0373=0.0874 or 0.0501-0.0373=0.0128

0.0128≤ π1 − π2 ≤0.0874

We are 95% confident that the difference between the proportion of technology crowdfunding
and game crowdfunding is between 0.01028 and 0.0874 .