Stat 22

Exercise
Test of Hypothesis

1. The manager of the Fort Ilocano Resort Hotel stated that the mean guest bill is 6000 pesos
for a weekend. A member of the hotel’s accounting staff noticed that the total charges for
guest bills have been increasing in recent months. The accountant will use a sample of
weekend guest bills to test the manager’s claim.
a. Which form of the hypotheses should be used to test the manager’s claim? Explain.
b. What conclusion is appropriate when Ho cannot be rejected?
c. What conclusion is appropriate when Ho can be rejected?
2. Joan’s nursery specializes in custom-designed landscaping for residential areas. The
estimated labor cost associated with a particular landscaping proposal is based on the
number of planting of trees, shrubs, and so on to be used for the project. For cost-estimating
purposes, managers used two hours of labor time for the planting of a medium-sized tree.
Actual times from a sample of 10 plantings during the past month follow (times in hours).

1.7 1.5 2.6 2.2 2.4 2.3 2.6 3.0 1.4 2.3

With 5% level of significance, test to see whether the mean tree-planting time differs from
two hours.
3. A market research firm used a sample of individuals to rate the purchase potential of a
particular product before and after the individuals saw anew television commercial about
the product. The purchase potential ratings were based on a 0 to 10 scale, with higher values
indicating a higher purchase potential. Use 5% level of significance if the commercial
improved the mean purchase potential.

Purchase Rating
Individual After Before
1 6 5
2 6 4
3 7 7
4 4 3
5 3 5
6 9 8
7 7 5
8 6 6
End.

Reference: Williams, Thomas A., et. Al., Modern Business Statistics