Exercises Chapter 10

35. A recent study revealed the typical American coffee drinker consumes an average of 3.1 cups per day.
A sample of 12 senior citizens revealed they consumed the following amounts of coffee, reported in
cups, yesterday.

3.1 3.3 3.5 2.6 2.6 4.3 4.4 3.8 3.1 41 3.1 3.2

At the .05 significance level, do these sample data suggest there is a difference between the national
average and the sample mean from senior citizens?

H0 : µ =3.10 H1: µ ≠ 3.10 n = 12 df = 12 -1 = 11 α = 0.05 t0.05 -11 =2.2010

3.1+3.3+3.5+ 2.6+2.6+ 4.3+ 4.4+3.8+3.1+ 4.1+3.1+3.2

X՟= =3.425
12
2 2 2 2 2 2 2 2
S =( ( 3.1−3.425 ) + (3.3−3.425 ) + ( 3.5−3.425 ) + ( 2.6−3.425 ) + ( 2.6−3.425 ) + ( 4.3−3.425 ) + ( 4.4−3.425 ) + ( 3.8−
11 = 0.6077

S = S= √ 0.37185604=0.6098

X ՟−µ 3.425−3.1 0.325

t= = = =1.853
s 0.6077 0.17 54
√n √12

Compare the test statistic to the critical value: Since the test statistic (1.853) is less than the critical value
(2.2010), we fail to reject the null hypothesis. In conclusion, at the 0.05 significance level, there is not
enough evidence to suggest that there is a difference between the national average and the sample
mean from senior citizens.
39. Watch Corporation of Switzerland claims that its watches only lose time during week. A sample of 18
watches provided the following gains (+) or losses (-) in seconds per week:

-0.38 -0.20 -0.38 -0.32 +0.32 -0.23 +0.30 +0.25 -0.10

-0.37 -0.61 -0.48 -0.47 -0.64 -0.04 -0.20 -0.68 +0.05

Is it reasonable to conclude that the mean gains or loss in time for the watches is 0? Use the .05
significance level.

H0 : µ = 0 H1 : µ ≠ 0 x̄ = (Σx) / n = - 0.2322 S = √(Σ(x - x̄)² / (n - 1)) = 0.311987 t0.05 -17 = ± 2.11

X ՟−µ (−0.2322−0) −0.2322

t= = = =−3.1577
s 0.311987 0.07354
√n √1 8
We compare the calculated t-value with the critical t-values. Since -3.15 is less than -2.11, we reject the
null hypothesis. So, we can conclude that it is not reasonable to claim that the mean gain or loss in time
for the watches is 0 at the 0.05 significance level.

40. Listed below is the annual rate of return (reported in percent) for a sample of 12 taxable mutual
funds.

4.63 4.15 4.76 4.70 4.65 4.52

4.70 5.06 4.42 4.51 4.24 4.52

Using the .05 significance level, is it reasonable to conclude that the mean rate of return is more than
4.50%. ?

H0 : µ ≤ 4.5 % H1 : µ ≥ 4.5% x̄ = (Σx) / n = 4.57166667 S = √(Σ(x - x̄)² / (n - 1)) = 0.2405234

t0.05-11= 1.796

X ՟−µ (4.57166667−4.5)
t= = =1.032168163
s 0 .2405234
√n √1 2
Because the t statistic compare with the critical value is less, we fail to reject the null hypothesis. we
conclude that it is not reasonable to assume that the mean rate of return is more than 4.5%.

43. The publisher of Celebrity Living claims that the mean sales for personality magazines that feature
people such as Megan Fox or Jennifer Lawrence are 1.5 million copies per week. A sample of 10
comparable titles shows a mean weekly sale last week of 1.3 million copies with a standard deviation of
0.9 million copies. Do these data contradict the publisher's claim? Use the .01 significance level.

H0 : µ = 1.5 H1 : µ ≠ 1.5 x̄ = 1.5 S = 1.9 n=10 t0.01-9= ± 3.25

X ՟−µ (1.3−1.5)
t= = =−0.702
s 0.9
√n √1 0
The test statistic of -0.702 does not fall in the critical region of less than -3.25 or greater than 3.25. So,
we fail to reject the null hypothesis. The data does not contradict the publisher's claim that the mean
sales for personality magazines are 1.5 million copies per week.

46. The American Water Works Association reports that the per capita water use in a single-family home
is 69 gallons per day. Legacy Ranch is a relatively new housing development. The builders installed more
efficient water fixtures, such as low-flush toilets, and subsequently conducted a survey of the residences.
Thirty-six owners responded, and the sample mean water use per day was 64 gallons with a standard
deviation of 8.8 gallons per day. At the .10 level of significance, is that enough evidence to conclude that
residents of Legacy Ranch use less water on average?

H0 : µ ≤ 69 H1 : µ < 69 x̄ = 64 S = 8.8 t 0.10 -35= -1.3

X ՟−µ (64−69)
t= = =−3.4
s 8.8
√n √36

Since the test statistic (-3.4) is less than the critical value (-1.3), we reject the null hypothesis. We can
conclude that at the 0.10 level of significance, there is enough evidence to suggest that residents of
Legacy Ranch use less water on average than the national average.

49. The following null and alternate hypotheses are given:

H0 : µ ≤ 50 H1 : µ > 50
Suppose the population standard deviation is 10. The probability of a Type I error is set at 0.01 and the
probability of a Type II error at 0.30. Assume that the population mean shifts from 50 to 55. How large a
sample is necessary to meet these requirements?

α = 0.01 β = 0.30 S = 10 t0.01 = 2.33 (1- β ) = 1 – 0.30 = 0.70

50+2.33∗
( √10n )=55−.525∗( 10√n )
2
n=( 5.71 ) =32.6
A sample size of 33 is necessary to meet the given requirements.

50. An insurance company, based on past experience, estimates the mean damage for a natural disaster
in its area is $5,000. After introducing several plans to prevent loss, it randomly samples 200
policyholders and finds the mean amount per claim was $4,800 with a standard deviation of $1,300.
Does it appear the prevention plans were effective in reducing the mean amount of claim? Use the 0.05
significance level.

H0 : µ = 5000 H1 : µ < 5000 x̄ = 4800 S = 1300 n=200 df =200 -1 =199 α =0.05 p-value =0.015

X ՟−µ (4800−50 0 0)
t= = =−2. 1757
s 1300
√n √200

Since the P- value < α, we reject the null hypothesis. There is sufficient evidence that prevention plans
reduce the mean amount.