SET FOUR

Question 1
The manager of a production line believed that before he was employed, the mean average filling
of a small sachet of baked beans was 22 beans or less, with a standard deviation of 3.3. In order
to satisfy consumer complaints, the manager of the production line claims that he has now
improved the production process, and that the new production process will increase the existing
average filling. Suppose the factory supervisor has brought you a random sample of 121 small
sachets of baked beans and they have an average filling of 23.3. What conclusion do you make
about the claim of the manager suppose you are testing the hypothesis at 5%
significance level.
Question 2
The Dog Days Lawn Service advertises that it will completely maintain your lawn at an average
cost per customer of GHS 35 per month or less because the existing charges by other lawn
services are quite high. Assume the costs are normally distributed. A random sample of 18 Dog
Days customers shows the average cost to be GHS 32.50 with a population standard deviation of
GHS 8.10. Do the data support the claim made by Dog Days Lawn Service? Use a 5% and 10%
level of significance

Question 3
In a certain community, the standard average income of all employed individuals is believed to
be GHS 35,500. A group of citizens suspects this value is incorrect and gathers a random sample
of 140 employed individuals in hopes of showing that GHS 35,500 is not the correct average.
The mean of the sample is GHS 34,325 with a population standard deviation of GHS 4,200. Test
at α = 0.10 using the critical value of the sample mean approach and the p-value approach.

Question 4
The national club association does periodic studies on issues important to its membership. The
2008 executive summary of the club managers association of America reported that the average
country club initiation fee was GH¢31912. Suppose a random sample taken in 2009 of 12
country clubs produced the following initiation fees (GH¢):

29121 31472 28054 31005 36295 32771 26205 33299 25602 33726 39731 27816

Based on the sample information, can you conclude at the α = 0.05 level of significance that the
average 2009 country club initiation fees are lower than the 2008 average? Conduct your test at
the α = 0.05 level of significance.
Question 5
A mail- order business prides itself in its ability to fill customers’ orders in six calendar days pr
less on the average. Periodically, the operations manager selects a random sample of customer
orders. Based on this sample information, he decides if the desired standard is not being met. He
will assume that the average number of days to fill customers’ orders is six or less unless the data
suggest strongly otherwise.
a) Establish the appropriate null and alternate hypotheses.
b) On one occasion where a sample 40 customers was selected. The average number of days
was 6.65, with a sample standard deviation of 1.5 days. Can the operations manager conclude
that his mail-order business is achieving its goal? Use a significance level of 0.05 to answer
the question.
c) Calculate the p-value for this test, conclude the test using this p-value
d) The operations manager wishers to monitor the efficiency of his mail-order service often.
Therefore, he does not wish to repeatedly calculate t-values to conduct the hypothesis tests.
Obtain the critical value, x a so that the manager can simply compare the mean to this value to
conduct the test. Use x as the test statistic to conduct the test.