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STAT 2011. TEST 1 FEEDBACK.

June, 2016

1) A candy company fills a 480-g package of Halloween candy with individually wrapped pieces of candy.
The number of pieces of candy per package varies because the package is sold by mass. The company
wants to estimate the number of pieces per package. Inspectors randomly sample 140 packages of this
candy and count the number of pieces in each package. They find that the sample mean number of pieces
is 16.25. Assuming a population standard deviation of 0.8625, what is the point estimate of the number
of pieces per package? Construct a 98% confidence interval to estimate the mean number of pieces per
package for the population. Round your answer to two decimal places as needed.
(3 marks)

Ans:

= . .

. .

2) A random sample of size 81 is taken from a population of 300 members. The sample mean is 72 and the
population standard deviation is 12. Construct a 95% confidence interval to estimate the population mean.
Round your answer to two decimal places as needed.
(3 marks)

Ans:


= .


. .

STAT 2011. TEST 1 FEEDBACK.

June, 2016

3) According to a study five years ago by the Personal Communications Industry Association, the
average wireless phone user earns $62,000 per year. Suppose a re- searcher believes that the average
annual earnings of a wireless phone user are lower now and he sets up a study in an attempt to prove
his theory. He randomly samples 20 wireless phone users and finds out that the average annual salary
for this sample is $58,620, with a population standard deviation of $7,310. Use = 0.01 to test the
researchers theory. Assume wages in this industry are normally distributed.

a) State the hypotheses: (1 mark)


Ans:
: = ,
: < ,

b) Compute the test statistic. (2 marks)


Ans:
=

= .

c) Find the critical value (2 marks)


Ans:
= . = .

d) State the decision and write your conclusion (1 mark)


Ans:
Since the value of z is in the no-rejection area, we fail to reject the null hypothesis. So, there is not
sufficient statistical evidence to support that the average annual salary for wireless phone users is
less than $62,000

STAT 2011. TEST 1 FEEDBACK.

June, 2016

4) A hole-punch machine is set to punch a hole 1.84 cm in diameter in a strip of sheet metal in a
manufacturing process. The strip of metal is then creased and sent on to the next phase of production,
where a metal rod is slipped through the hole. It is important that the hole be punched to the specified
diameter of 1.84 cm. To test punching accuracy, technicians have randomly sampled 12 punched holes
and measured the diameters. The data (in centimeters) follow. Use an alpha of 0.10 to determine whether
the holes being punched have an average diameter of 1.84 cm. Assume the punched holes are normally
distributed in the population.

1.81

1.85

1.84 1.89

1.86

1.83 1.82

1.87 1.85

1.86

1.88

1.85

a) State the hypotheses: (1 mark)


Ans:
: = .
: .
b) Compute the test statistic. (2 marks)
Ans:
=

= .

c) Find the critical value. (2 marks)


Ans:
= .,() = .

d) State the decision and write your conclusion (1 mark)


Ans:
Since the value of t is in the no-rejection area, we fail to reject the null hypothesis. So, there is not
sufficient statistical evidence to support that the average diameter is different than 1.84 cm

STAT 2011. TEST 1 FEEDBACK.

June, 2016

5) Suppose the alternative hypothesis states that the mean is greater than 50. If a random sample of 35 items
is taken to test this hypothesis, what is the value of if the population standard deviation is 7 and the
actual population mean is 53? Use = 0.01. Round your answer to two decimal places as needed. (3
marks)

Ans:
HN : = 50
HR : > 50

Finding assuming that = 50

+ = .

Using the real population mean with this value of x-critical =

.V

Taking into account that is at the left side.

= 0.5 0.0832 = 0.4168

= .

STAT 2011. TEST 1 FEEDBACK.

June, 2016

6) Multinational companies generally provide an allowance for personal long-distance calls for

executives living overseas. Assume that 18% of Canadian-based multinational companies


provide such an allowance. A researcher thinks that Canadian-based multinational companies
are having a more difficult time recruiting executives to live overseas and that an increasing
number of these companies are providing an allowance for personal long-distance calls to these
executives to ease the burden of living away from home. To test this hypothesis, a study is
conducted by contacting 420 multinational companies. 97 of these surveyed companies are
providing an allowance for personal long-distance calls to executives living overseas. Does the
test show enough evidence to declare that a significantly higher proportion of multinational
companies provide a long-distance call allowance? Let = 0.01.
a) State the hypotheses: (1 mark)
Ans:
HN : = 0.18
HR : > 0.18
b) Compute the test statistic. (2 marks)
Ans:
=

(1 )

0.23095236 0.18
0.18(0.82)
420

= 2.72

c) Find the p value (2 marks)


Ans:
= . . = .

d) State the decision and write your conclusion (1 mark)


Ans:
Since the p- value is less than the level of significance, we reject the null hypothesis. So, there is
sufficient statistical evidence to support that the proportion of Canadian-based multinational
companies that provide allowance for personal long-distance calls for executives living overseas is
more than 18%

STAT 2011. TEST 1 FEEDBACK.

June, 2016

7) Two processes in a manufacturing line are performed manually: operation A and operation B. A random
sample of 64 different assemblies using operation A shows that the sample average time per assembly is
8.05 minutes, with a population standard deviation of 1.36 minutes. A random sample of 49 different
assemblies using operation B shows that the sample average time per assembly is 8.26 minutes, with a
population standard deviation of 1.06 minutes. For = 0.01, is there enough evidence in these samples
to declare that operation B takes significantly longer to perform than operation A?

a) State the hypotheses: (1 marks)


Ans:
: =
: <

b) Compute the test statistic. (2 marks)


Ans:
=

( ) ( )

+

(. . )
. .
+

= 0.92

c) Find the p value. (2 marks)


Ans:
= . . = .

d) State the decision and write your conclusion. (1 mark)


Ans:
Since the p- value is greater than the level of significance, we fail to reject the null hypothesis. So,
there is not sufficient statistical evidence to declare that the operation B takes significantly longer
to perform than operation A

STAT 2011. TEST 1 FEEDBACK.

June, 2016

8) Some studies have shown that men spend more than women buying gifts and cards on Valentines Day.
Suppose a researcher wants to test this hypothesis by randomly sampling 9 men and 8 women. Each study
participant is asked to keep a log beginning one month before Valentines Day and record all purchases
made for Valentines Day during that one-month period. The resulting data are shown below. Use these
data and a 5% level of significance to test to determine if, on average, men actually do spend significantly
more than women on Valentines Day. Assume that such spending is normally distributed in the
population and that the population variances are equal.

Men
Women

$108.41 143.61 110.19 125.53 70.79 83.00 129.63 154.22 93.80


$115.98

45.53 56.35

80.62

46.37 44.34 75.21

68.48

a) State the hypotheses: (1 mark)


Ans:
: =
: >
b) Compute the test statistic. (2 marks)
Ans:

+
= .
+

( ) ( )

= .

c) Find the critical value (2 marks)


Ans:
= .,() = .
d) State the decision and write your conclusion. (1 mark)
Ans:
Since the value of t is in the rejection area, we reject the null hypothesis. So, there is sufficient
statistical evidence to support that men actually spend more than women on Valentines Day

STAT 2011. TEST 1 FEEDBACK.

June, 2016

9) Suppose milk is produced in a certain area. Some people might argue that because of transportation costs,
the price of milk in stores increases with the distance of markets from that area. Suppose the milk prices
in eight cities are as follows.

Price of Milk
(per 2 L)

Distance from MilkProducing Area (km)

$2.64

1,245

2.6598

-0.0198

2.30

450

2.2987

0.0013

2.70

1,346

2.7057

-0.0057

2.52

973

2.5363

-0.0163

2.19

255

2.2101

-0.0201

2.55
870
2.4895
Round your answer to four decimal places as needed.
a) Compute the coefficient of correlation between the two variables
Ans:
r = 0.9878

0.0605

(1 mark)

b) Develop a regression line to predict the price of 2 L of milk by the number of


kilometers the city is from the milk-producing area.
Ans:
= . + .

(1 mark)

c) Use the data and the regression equation to complete the above table by computing the
residuals for this model. Sketch a graph of the residuals in the order of the x values.
Comment on the shape of the residual graph. (3 marks)

Residuals

X Variable 1 Residual Plot


0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
-0.01 0
-0.02
-0.03

200

400

600

800

X Variable 1

1,000

1,200

1,400

1,600

STAT 2011. TEST 1 FEEDBACK.

June, 2016

d) Determine the sum of squares of error (SSE) and the standard error of the estimate (se)
3 marks)
Ans:
=

= .

.
= .

e) Compute r for and discuss the value of r obtained (1 mark)


Ans:
= .
10) Study the following ANOVA table, which was generated from a simple regression analysis in Excel.
Determine the value of t and test the slope of the regression line. (2 marks)

Analysis of Variance
Source

DF

SS

MS

Regression

625246.3024 625246.3024 52.86064854 0.000344486

Error

70969.19765 11828.19961

Total

696215.5

Ans:
= = . = .
Using the usual 5% level of significance
= .,() = .
Since t is in the rejection region, we reject the null hypothesis that the slope is 0.
Hence, at 5% level of significance the regression model predict the values of y

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