BUSA 2000: Statistical Analysis for Business

Topic #8 (Hypothesis Tests) Problem Set

Directions: Complete these problems as many times as necessary, that is, until you feel confident in your
answers. Then, submit your final answers in Quizzes on our class MyCourses website before the assigned
due date/time. You may only submit your final answers once. When submitting your final answers, be sure
to follow any & all of the rounding & answer reporting rules that appear on the screen. Not following these
directions is likely to result in a lowered grade or possibly even a grade of 0%.

1. A company that produces garden hoses claims their product has a lifespan of at least 20 years.
Thus, they came up with the following hypothesis test.

H0 : µ ≥ 20
Ha : µ < 20

A sample of 50 garden hoses provided a mean lifespan of 19.4 years, with a (population) standard
deviation of 2.
(a) Compute the z -value test statistic. (always show 2 decimal places for z )

(b) What is the p-value? (always show 4 decimal places for p)

(c) Using α = 0.05, do you Reject H0 or Fail to reject H0 ?

2. Manager Moe thinks (hopes) his employees spend less than 25 minutes per day taking breaks,
on average. Thus, he came up with the following hypothesis test.

H0 : µ ≤ 25
Ha : µ > 25

He sampled 40 employees one day & calculated a mean break time of 26.4 minutes, with a (popu-
lation) standard deviation of 6.
(a) Compute the z -value test statistic. (always show 2 decimal places for z )

(b) What is the p-value? (always show 4 decimal places for p)

(c) Using α = 0.01, do you Reject H0 or Fail to reject H0 ?

3. An online retailer believes that their average customer visits their website 15 times per year.
Thus, they came up with the following hypothesis test.

H0 : µ = 15
Ha : µ 6= 15

They sampled 50 customers & calculated a sample mean of 14.15 online visits in the last year, with
a (population) standard deviation of 3.
(a) Compute the z -value test statistic. (always show 2 decimal places for z )

(b) What is the p-value? (always show 4 decimal places for p)

(c) Using α = 0.05, do you Reject H0 or Fail to reject H0 ?

4. A middle manager has told his boss that, this year, about 20% of customers are returning
customers. Thus, the following hypothesis test has been set up.

H0 : p = 0.20
Ha : p 6= 0.20

A sample of 400 customers found that 70 of them had purchased something previously.

(a) Compute the z -value test statistic. (always show 2 decimal places for z )

(b) What is the p-value? (always show 4 decimal places for p)

(c) Using α = 0.05, do you Reject H0 or Fail to reject H0 ?

5. Regarding affirmative action, a company claims that more than 30% of its job applicants are
minorities. Thus, the following hypothesis test has been set up.

H0 : p ≥ 0.30
Ha : p < 0.30

A review of 100 applications found that 21 applicants were minorities.

(a) Compute the z -value test statistic. (always show 2 decimal places for z )

(b) What is the p-value? (always show 4 decimal places for p)

(c) Using α = 0.10, do you Reject H0 or Fail to reject H0 ?

6. An airline claims that fewer than 5% of its flights are delayed. Thus, the following hypothesis
test has been set up.

H0 : p ≤ 0.05
Ha : p > 0.05

A sample of 25 flights showed that 3 were delayed.

(a) Compute the z -value test statistic. (always show 2 decimal places for z )

(b) What is the p-value? (always show 4 decimal places for p)

(c) Using α = 0.01, do you Reject H0 or Fail to reject H0 ?