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Question 1 (5 Marks. Hypothesis test for a mean)
A manufacturing firm has been averaging 18.5 orders per week for several years. However, during a recession, orders appear to have slowed. Suppose the firm’s production manager randomly samples 22 weeks and finds a sample mean of 15.6 orders, with a sample standard deviation of 2.3 orders. Test, at a 5% significance level, to determine whether the average number of orders has decreased.
Question 2 (5 Marks. Hypothesis test for 2 means)
The leading newspaper in United States reports that the average wage of an advertising manager is greater than the average wage of an auditing manager. A random sample of 32 advertising managers from across the United States is taken. The advertising managers are contacted by telephone and asked what is their annual salary. A similar random sample is taken of 34 auditing managers. The summary of the resulting salary data is tabulated below.
Advertising Managers Auditing Managers
Sample Size 32 34
Sample mean (in thousand) 70.7 62.187
Sample standard deviation (in thousand) 16.253 12.900
Test the news paper’s claim at 5% level of significance.
Question 3 (5 Marks. Hypothesis test for a proportion)
The U.S. Department of Transportation, National Highway Traffic Safety Administration reported that 79% of all fatally injured automobile drivers were intoxicated. A random sample of 27 records of automobile driver fatalities in Kit Carson Country, Colorado, showed that 15 involved an intoxicated driver. Do these data indicate that population proportion of driver fatalities related to alcohol is equal to 79% in Kit Carson Country? Test at 5% level of significance.
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