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# Chapter 6 Hypothesis Testing Homework ____________________________

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1. A life insurance salesman believes that the mean age of people who buy their first life insurance plan is less than 35. To test his belief he takes a random sample of 15 customers who have just purchased their first life insurance policy. The sample yielded a mean of 32. We may assume that = 5.8 and that the ages come from a normal population. Can we conclude at the .01 significance level that the insurance salesman is correct? To answer this question: (1) define parameter of interest and set up the null and alternative hypotheses, (2) give the test statistic formula and its distribution, (3) give the rejection region and/or decision rule, (4) check any necessary assumptions and compute the test statistic, (5) make a decision and a conclusion. (1)

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## Chapter 6 Hypothesis Testing Homework ____________________________ 2.

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A professor claims that College of Business graduates earn an average of more than \$45,000 per year. In a random sample of 300 graduates, the average earnings was \$45,050 with a standard deviation of about \$850. At the .05 significance level, can we conclude that the professors claim is correct? To answer this question: (1) define parameter of interest and set up the null and alternative hypotheses, (2) give the test statistic formula and its distribution, (3) give the rejection region and/or decision rule, (4) check any necessary assumptions and compute the test statistic, (5) make a decision and a conclusion.

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## Chapter 6 Hypothesis Testing Homework ____________________________ 3.

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At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, You can average more than \$20 a day in tips. For a sample of 65 days she was employed at the restaurant, the mean daily amount of her tips was \$24.85, with a standard deviation of \$3.24. At the .01 significance level, can Ms. Brigden conclude that she is earning an average of more that \$20 in tips? To answer this question: (1) define parameter of interest and set up the null and alternative hypotheses, (2) give the test statistic formula and its distribution, (3) give the rejection region and/or decision rule, (4) check any necessary assumptions and compute the test statistic, (5) make a decision and a conclusion.

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## Chapter 6 Hypothesis Testing Homework ____________________________ 4.

Name:

A machine that produces ball bearings is set so that the nominal average diameter is half an inch. A sample of 10 ball bearings was measured with the following results: {.48, .50, .49, .52, .53, .48, .49, . 47, .46, .51}. You may assume that the diameters are approximately normal. Can we conclude at the = .01 level that the mean diameter is not actually half an inch? To answer this question: (1) define parameter of interest and set up the null and alternative hypotheses, (2) give the test statistic formula and its distribution, (3) give the rejection region and/or decision rule, (4) check any necessary assumptions and compute the test statistic, (5) make a decision and a conclusion.

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