DSME 2011F/G Homework #4 Hypothesis Testing Chiu Yu Ko
DSME 2011F/G Homework #4 Hypothesis Testing Chiu Yu Ko
Q1. (Age of customers) The owner of a local club has recently surveyed a random
sample of 900 customers of the club. She would now like to determine whether or not
the mean age of her customers is greater than 50. She knows that population standard
deviation should be 16 years. If so, she plans to alter the entertainment to appeal to
an older crowd. If not, no entertainment changes will be made. Suppose she found
that the sample mean was 48 years.
Q2. (Audit) The current owner of a business claims that over the past 6 years, the
mean daily revenue was $30 with population standard deviation being $26. A sample
of 169 days reveals a daily mean revenue of $29. As an auditor, you need to decide if
the population daily mean revenue was $30.
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(e) What should be the decision of the owner at 5% level of significance?
Q3. (Drug) A survey claims that 81 out of 100 doctors recommend aspirin for their
patients with headaches. To test this claim against the alternative that the actual
proportion of doctors who recommend aspirin is less than 0.81, a random sample of
100 doctors results in 64 who indicate that they recommend aspirin. There is suffi-
cient evidence that the sampling distribution of proportion is approximately normally
distributed.
(e) What should be the conclusion for the scientist at 5% level of significance?
Now consider the case that population variance for antibody level are the different
for different vaccines.
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(f) What is the test statistic?
(h) What should be the conclusion of the environmental group at 5% level of signif-
icance?
Q5. (GPA) A teacher claimed that students are getting higher GPA in their third
year than their forth year. The teacher randomly asked ten recent graduates for their
GPA:
Year 3 3.55 3.44 3.61 3.32 3.82 2.64 2.85 3.51 2.76 3.25
Year 4 3.67 3.38 3.42 3.18 3.01 2.87 3.02 2.97 2.35 2.84
The teacher is interested in the difference of the GPA between the two years. While
there is no reliable information about the population variance of this difference, it is
feasible to assume that the population is normally distributed.
Q6. (Climate Changes) A powerful environmental group has claimed that men and
women different in attitudes about climate changes. A group of 80 men (group 1)
and 100 women (group 2) were asked if they thought climate change is a very serious
problem. Of those sampled, 35 of the men and 55 of the women did believe that climate
change is a very serious problem.
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(e) What should be the conclusion of the environmental group at 5% level of signif-
icance?
Q7. (Stock market) A researcher claims that the variance of monthly return of two
stocks (X and Y) are different. There is sufficient evidence that the month returns of
two stocks are independent and normally distributed. The researcher collects 50 and
40 monthly returns for the two stocks. Sample variances of the two stocks are 26 and
12 respectively.