A research firm surveyed 49 randomly selected Americans to
determine the mean amount spent on coffee during 1 week. The sample mean was $20 per week. The population distribution is normal with a standard deviation of $5.
a. What is the point estimate of the population mean? Explain
what it indicates. b. Using the 95% level of confidence, determine the confidence interval for μ. Explain what it indicates.
The management of KSmall Industries is considering a new
method of assembling a computer. The current assembling method requires a mean time of 60 minutes with a standard deviation of 2.7 minutes. Using the new method, the mean assembly time for a random sample of 24 computers was 58 minutes. Using the .10 level of significance, can we conclude that the assembly time using the new method is faster?
• A sample of 40 observations is selected from one population
with a population standard deviation of 5. The sample mean is 102. A sample of 50 observations is selected from a second population with a population standard deviation of 6. The sample mean is 99. Conduct the following test of hypothesis using the .04 significance level. H0: μ1 = μ2 H1: μ1 ≠ μ2 a. Is this a one-tailed or a two-tailed test? b. State the decision rule. c. Compute the value of the test statistic. d. What is your decision regarding H0? e. What is the p-value?