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Problem: The mean number of hours of flying time for pilots at Continental Airlines is 49 hours per month

a. At 95 per cent confidence, what is the margin of error for estimating the population mean flying time?
b. What is the 95 per cent confidence interval estimate of the population mean flying time?
c. The mean number of hours of flying time for pilots at United Airlines is 36 hours per month. Use your

Data: n x-bar s or s %
100 49 8.5 95

Standard Error, SE = s/Ön = 0.8500


Degrees of freedom = 99
t- score = 1.9842
Width of the confidence interval = t * SE = 1.6866
Lower Limit of the confidence interval = x-bar - width = 47.3134
Upper Limit of the confidence interval = x-bar + width = 50.6866
The confidence interval is [ 47.3134 50.6866 ]

We are 95% confident that the interval [ 47.3134 50.6866

(a) Margin of error = width of the confidence interval = 1.6866 hours


(b) The 95% confidence interval is [47.3134 hours, 50.6866 hours]
(c) As per (b) we are 95% confident that no pilot of Continental Airlines flies less than 47.3 hours per month. This is
9 hours per month (The Wall Street Journal, 25 February, 2003). Assume that this mean was based on actual flying times for a sa
pulation mean flying time?
n flying time?
hours per month. Use your results from part (b) to discuss differences between the flying times for the pilots at the two airlines.

] contains the population mean

47.3 hours per month. This is distinctly high compared to the mean flying time of 36 hours per month for pilots of United Airlines. Even if w
tual flying times for a sample of 100 Continental pilots and the sample standard deviation was 8.5 hours.

pilots at the two airlines. The Wall Street Journal reported United Airlines as having the highest labour cost among all airlines. D

of United Airlines. Even if we were able to apply a confidence interval, the mean flying time for pilots of United Airlines is much less implyin
ost among all airlines. Does the information in this exercise provide insight as to why United Airlines might expect higher labou

Airlines is much less implying that more pilots have to be hired. This could explain the higher labor costs for United Airlines.
ight expect higher labour costs?

ed Airlines.
Problem: A survey of 611 office workers investigated telephone answering practices, including how often each office
a. What is the point estimate of the proportion of the population of office workers who are able to take ev
b. At 90 per cent confidence, what is the margin of error?
c. What is the 90 per cent confidence interval for the proportion of the population of office workers who

Data: n p %
611 0.46 90

Standard Error, SE = Ö{p(1 - p)/n} = 0.0202


z- score = 1.6449
Width of the confidence interval = z * SE = 0.0332
Lower Limit of the confidence interval = P - width = 0.4267
Upper Limit of the confidence interval = P + width = 0.4931
The confidence interval is [ 0.4267 0.4931 ]

We are 90% confident that the interval [ 0.4267 0.4931

(a) Point estimate = p = 281/611 = 0.46


(b) Margin of error = width of the confidence interval = 0.0332
(c) The 90% confidence interval is [0.4267, 0.4931]
luding how often each office worker was able to answer incoming telephone calls an how often incoming telephone calls went di
kers who are able to take every telephone call?

ation of office workers who are able to take every telephone call?

] contains the population proportion


g telephone calls went directly to voice mail (USA Today, 21 April, 2002). A total of 281 office workers indicated that they never
indicated that they never need voice mail and are able to take every telephone call.
Problem: A production line operates with a mean filling weight of 500 grams per container. Over-filling or under-fill
a. State the hypotheses in the hypothesis test for this quality control application.
b. If a sample mean of 510 grams were found, what is the p-value? What action would you recommend?
c. If a sample mean of 495 grams were found, what is the p-value? What action would you recommend?
d. Use the critical value approach. What is the rejection rule for the preceding hypothesis testing procedu

(a) H0: The mean weight is 500 g, that is μ = 500 vs Ha: The mean weight is different from 500 g, that is μ ≠ 500

(d with b)
Data: n μ s
30 500 25

(1) Formulate the hypotheses:

H0: μ = 500
Ha: μ ≠ 500

(2) Decide the test statistic and the level of significance:

z (Two-tailed), α = 0.05 Lower Critical z- score = -1.9600

(3) State the decision Rule:

Reject H0 if |z| > 1.9600

(4) Calculate the value of test statistic:

SE = s/Ön = 4.5644
z = (x-bar - μ)/SE = 2.1909

(5) Compare with the critical value and make a decision:

Since 2.1909 > 1.9600

Decision: It appears that the mean weight is different from 500 g. The filling mechanism needs to be re

(6) Calculate the p- value for the test and interpret it:

p- value = 0.0285 This is the probability of rejecting a true null hypot

p- value = 0.0285. It appears that the mean weight is different from 500 g. The filling mechanism needs to be reset
(d with c)
Data: n μ s
30 500 25

(1) Formulate the hypotheses:

H0: μ = 500
Ha: μ ≠ 500

(2) Decide the test statistic and the level of significance:

z (Two-tailed), α = 0.05 Lower Critical z- score = -1.9600

(3) State the decision Rule:

Reject H0 if |z| > 1.9600

(4) Calculate the value of test statistic:

SE = s/Ön = 4.5644
z = (x-bar - μ)/SE = -1.0954

(5) Compare with the critical value and make a decision:

Since 1.0954 < 1.9600

Decision: There is no sufficient evidence that the mean weight is different from 500 g. The filling mech

(6) Calculate the p- value for the test and interpret it:

p- value = 0.2733 This is the probability of rejecting a true null hypot

p- value = 0.2733. There is no sufficient evidence that the mean weight is different from 500 g. The filling mechanis
Over-filling or under-filling presents a serious problem and when detected requires the operator to shut down the production line

would you recommend?


would you recommend?
pothesis testing procedure? Repeat parts (b) an (c). Do you reach the same conclusion?

500 g, that is μ ≠ 500

x-bar
510

Upper Crtical z- score = 1.9600

We reject H0 and accept Ha

mechanism needs to be reset.

rejecting a true null hypothesis.

chanism needs to be reset.


x-bar
495

Upper Crtical z- score = 1.9600

We fail to reject H0

om 500 g. The filling mechanism appears to be working normally.

rejecting a true null hypothesis.

500 g. The filling mechanism appears to be working normally.


down the production line to readjust the filling mechanism. From past data, a population standard deviation σ = 25 grams is ass
ion σ = 25 grams is assumed. A quality control inspector selects a sample of 30 items every hour and at that time makes the deci
that time makes the decision of whether to shut down the line for readjustment. The level of significance is α = 0.05.
Problem: Microsoft Outlook is the most widely used email manager. A Microsoft executive claims that Microsoft Ou
a. Formulate the hypotheses that can be used to test the claim.
b. A Merrill Lynch study reported that Microsoft Outlook is used by 72 per cent of Internet users. Assum
c. At α = 0.05, should the executive’s claim of at least 75 per cent be rejected?

(a) H0: The proportion is 75% or more, that is p ≥ 0.75 vs Ha: The proportion is less than 0.75, that is p < 0.75

Data: n p p'
300 0.75 0.72

(1) Formulate the hypotheses:

H0: p ³ 0.75
Ha: p < 0.75

(2) Decide the test statistic and the level of significance:

z (Left-tailed), α = 0.05 Critical z- score = -1.6449

(3) State the decision Rule:

Reject H0 if z < -1.6449

(4) Calculate the value of test statistic:

SE = Ö{(p (1 - p)/n} = 0.0250


z = (p' - p)/SE = -1.2000

(5) Compare with the critical value and make a decision:

Since -1.2000 > -1.6449 we fail to reject H0

Decision: There is no sufficient evidence that the population proportion is less than 0.75. The executiv

(6) Calculate the p- value for the test and interpret it:

p- value = 0.1151 This is the probability of rejecting a true null hypothesis.

(b) p- value is 0.1151

(c) There is no sufficient evidence that the population proportion is less than 0.75. The executive’s claim of at least
executive claims that Microsoft Outlook is used by at least 75 per cent of Internet users. A sample of Internet users will be used

2 per cent of Internet users. Assume that the report was based on a sample size of 300 Internet users. What is the p-value?

s less than 0.75, that is p < 0.75

we fail to reject H0

ortion is less than 0.75. The executive’s claim of at least 75 per cent can not rejected.

ecting a true null hypothesis.

0.75. The executive’s claim of at least 75 per cent can not rejected.
net users will be used to test this claim.

is the p-value?
Problem: The Dublin retailer age study (used as an example above) provided the following data on the ages of custom
Inner- Out-of-
city town
store store
n1 = 36 n2 = 49
1
= 40 2
= 35
years years
σ1 = 9 σ2 = 10
years years

[I have taken the hypothesis to be tested as - At α = 0.05, is there a significant difference in the mean ages of the cu

Data: n1
36

(1) Formulate the hypotheses:

H0: μ1 = μ2
Ha: μ1 ≠ μ2

(2) Decide the test statistic and the level of significance:

t (Two-tailed), α = 0.05
Lower Critical t- score = -1.9890

(3) State the decision Rule:

Reject H0 if |t| > 1.9890

(4) Calculate the value of test statistic:

Pooled SD, s = Ö[{(n1 - 1) s1^2 + (n2 - 1) s2^2} / (n1 + n2 - 2)] = 9.591


SE = s * Ö{(1 /n1) + (1 /n2)} = 2.1054
t = (x1-bar -x2-bar)/SE = 2.3749

(5) Compare with the critical value and make a decision:

Since 2.3749

Decision: It appears that there is a significant difference in the mean ages of the customers

(6) Calculate the p- value for the test and interpret it:
p- value = 0.0199

It appears that there is a significant difference in the mean ages of the customers at the two stores.
data on the ages of customers from independent random samples taken at the two store locations.

in the mean ages of the customers at the two stores?]

n2 x1-bar x2-bar s1 s2
49 40 35 9 10

Degrees of freedom = 83
Upper Crtical t- score = 1.9890

> 1.9890 We reject H0 and accept Ha

ean ages of the customers at the two stores.


This is the probability of rejecting a true null hypothesis.