Chapter 9: Introduction to Hypothesis Testing
Chapter 9: Introduction to Hypothesis Testing
Chapter 9: Introduction to Hypothesis Testing
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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