30.05.2014 Views

Chapter 9: Introduction to Hypothesis Testing

Chapter 9: Introduction to Hypothesis Testing

Chapter 9: Introduction to Hypothesis Testing

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

398 CHAPTER 9 • INTRODUCTION TO HYPOTHESIS TESTING<br />

Business Applications<br />

9-12. A mail-order business prides itself in its ability <strong>to</strong><br />

fill cus<strong>to</strong>mers’ orders in six calendar days or less<br />

on the average. Periodically, the operations manager<br />

selects a random sample of cus<strong>to</strong>mer orders<br />

and determines the number of days required <strong>to</strong> fill<br />

the orders. Based upon this sample information, he<br />

decides whether the desired standard is being met.<br />

He will assume that the average number of days <strong>to</strong><br />

fill cus<strong>to</strong>mers’ orders is six or less unless the data<br />

suggest strongly otherwise.<br />

a. Establish the appropriate null and alternative<br />

hypotheses.<br />

b. On one occasion where a sample of 40 cus<strong>to</strong>mers<br />

was selected, the average number of<br />

days was 6.65, with a sample standard deviation<br />

of 1.5 days. Can the operations manager conclude<br />

that his mail-order business is achieving<br />

its goal? Use a significance level of 0.025 <strong>to</strong><br />

answer this question.<br />

c. Calculate the p-value for this test. Conduct the<br />

test using this p-value.<br />

d. The operations manager wishes <strong>to</strong> moni<strong>to</strong>r the<br />

efficiency of his mail-order service often.<br />

Therefore, he does not wish <strong>to</strong> repeatedly<br />

calculate z-values <strong>to</strong> conduct the hypothesis<br />

tests. Obtain the critical value, x, so that the<br />

manager can simply compare the sample mean<br />

<strong>to</strong> this value <strong>to</strong> conduct the test. Use x as the<br />

test statistic <strong>to</strong> conduct the test.<br />

9-13. The National Club Association reported that the<br />

average initiation fee for full membership in U.S.<br />

country clubs was $33,757 in 2004 (Natlclub.org).<br />

Suppose a recent random sample of nine U.S.<br />

country clubs revealed the following initiation<br />

fees:<br />

Full Membership Initiation Fees ($)<br />

34,121 36,472 30,054 36,005 41,295<br />

37,771 31,205 38,299 30,602<br />

Based on the sample information, can you<br />

conclude that initiation fees for U.S. country<br />

club memberships have increased over the 2004<br />

amount? Conduct your test at the α 0.05 level<br />

of significance.<br />

9-14. The direc<strong>to</strong>r of a state agency believes that the<br />

average starting salary for clerical employees in the<br />

state is less than $30,000 per year. To test her<br />

hypothesis, she has collected a simple random sample<br />

of 100 starting clerical salaries from across the<br />

state and found that the sample mean is $29,750.<br />

a. State the appropriate null and alternative<br />

hypotheses.<br />

b. Assuming the population standard deviation is<br />

known <strong>to</strong> be $2,500 and the significance level<br />

for the test is <strong>to</strong> be 0.05, what is the critical<br />

value (stated in dollars)?<br />

c. Referring <strong>to</strong> your answer in part b, what<br />

conclusion should be reached with respect <strong>to</strong><br />

the null hypothesis?<br />

d. Referring <strong>to</strong> your answer in part c, which of the<br />

two statistical errors might have been made in<br />

this case? Explain.<br />

9-15. The makers of Mini-Oats Cereal have an<br />

au<strong>to</strong>mated packaging machine that can be set at<br />

any targeted fill level between 12 and 32 ounces.<br />

Every box of cereal is not expected <strong>to</strong> contain<br />

exactly the targeted weight, but the average of<br />

all boxes filled should. At the end of every shift<br />

(eight hours), 16 boxes are selected at random<br />

and the mean and standard deviation of the<br />

sample are computed. Based on these sample<br />

results, the production control manager determines<br />

whether the filling machine needs <strong>to</strong> be readjusted<br />

or whether it remains all right <strong>to</strong> operate. Use<br />

0.05.<br />

a. Establish the appropriate null and alternative<br />

hypotheses <strong>to</strong> be tested for boxes that are<br />

supposed <strong>to</strong> have an average of 24 ounces.<br />

b. At the end of a particular shift during which<br />

the machine was filling 24-ounce boxes of<br />

Mini-Oats, the sample mean of 16 boxes was<br />

24.32 ounces, with a standard deviation of<br />

0.70 ounce. Assist the production control<br />

manager in determining if the machine is<br />

achieving its targeted average.<br />

c. Why do you suppose the production control<br />

manager would prefer <strong>to</strong> make this hypothesis<br />

test a two-tailed test? Discuss.<br />

d. Conduct the test using a p-value. (Hint: Use<br />

Excel’s TINV function.)<br />

e. Considering the result of the test, which of the<br />

two types of errors in hypothesis testing could<br />

you have made?<br />

9-16. A recent internal report issued by the marketing<br />

manager for a national oil-change franchise indicated<br />

that the mean number of miles between oil<br />

changes for franchise cus<strong>to</strong>mers is at least 3,600<br />

miles. One Texas franchise owner conducted a<br />

study <strong>to</strong> determine whether the marketing manager’s<br />

statement was accurate for his franchise’s<br />

cus<strong>to</strong>mers. He selected a simple random sample of<br />

10 cus<strong>to</strong>mers and determined the number of miles<br />

each had driven the car between oil changes. The<br />

following sample data were obtained:<br />

3,655 4,204 1,946 2,789 3,555<br />

3,734 3,208 3,311 3,920 3,902

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!