EXERCISE

1. A design engineer at Sperling Manufacturing, a supplier of high-quality ball bearings,

claims a new machining process can result in a higher daily output rate. Accordingly, the
production group is conducting an experiment to determine if this claim can be substantiated.
The mean and standard deviation of bearings in a sample of 8 days’ output using the new
process equal 2,613.63 and 90.78, respectively. A similar sample of 10 days’ output using the
old process yield the mean and standard deviation 2,485.10 and 148.22, respectively.

a) Set up the hypotheses to test whether the mean output rate of the new process exceeds
that of the old process. Assume normal populations and equal population variances
for each process. Use the critical value approach for the analysis.
b) Compute the value of the test statistic.
c) At the 5% significance level, what is the conclusion of the experiment?
d) At the 1% significance level, what is the conclusion of the experiment?

2. According to a recent report, 32.2% of American adults (aged 20 and older) are obese (The
New York Times, August 15, 2008). Among ethnic groups in general, African-American
women are more overweight than Caucasian women, but African-American men are less
obese than Caucasian men. Sarah Weber, a recent college graduate, is curious to determine if
the same pattern also exists in her hometown on the West Coast. She randomly selects 220
African Americans and 300 Caucasian adults for the analysis. The following table contains
the sample information.

Race Gender Obese Not Obese

African Americans Males 36 94
Females 35 55
Caucasians Males 62 118
Females 31 89
a) Use the p-value approach to test if the proportion of obese African-American men is
less than the proportion of obese Caucasian men at .
b) Use the critical value approach to test if the proportion of obese African-American
women is more than the proportion of obese Caucasian women at .
c) Use the critical value approach to test if the proportion of obese African Americans
differ from the proportion of obese Caucasian adults at the 5% significance level.
3. An online survey by the Sporting Goods Manufacturers Association, a trade group of
sports retailers and marketers, claimed that household income of recreational athletes varies
by sport (The Wall Street Journal, August 10, 2009). In order to verify this claim, an
economist samples five sports enthusiasts participating in each of six different recreational
sports and obtains each enthusiast’s income (in $1,000s), as shown in the accompanying
table.

Boardsailing/ On-Road Off-Road

Snorkeling Sailing Bowling
Windsurfing Triathlon Triathlon
90.9 87.6 75.9 79.3 64.5 47.7
86.0 95.0 75.6 75.8 67.2 59.6
93.6 94.6 83.1 79.6 62.8 68.0
98.8 87.2 74.4 78.5 59.2 60.9
98.4 82.5 80.5 73.2 66.5 50.9
a) Specify the competing hypotheses in order to test the association’s claim.
b) Construct an ANOVA table. Assume incomes are normally distributed.
c) At the 5% significance level, what is the critical value?
d) Do some average incomes differ depending on the recreational sport? Explain.

4. The following observations were obtained when conducting a two-way ANOVA

experiment with no interaction.

Factor A
Factor B
1 2 3
1 5 15 12
2 2 10 8
3 0 -9 -2
4 -3 -14 -8
a) Calculate SST, SSA, SSB, and SSE.
b) Calculate MSA, MSB, and MSE.
c) Construct an ANOVA table.
d) At a 1% significance level, can you conclude that the column means differ?
e) At a 1% significance level, can you conclude that the row means differ?
5. A human resource specialist wants to determine whether the average job satisfaction score
(on a scale of 0 to 100) is the same for three different industries and three types of work
experience. A randomized block experiment with interaction is performed. The results are
shown in the accompanying table.

Industry
Work Experience
A B C
77 66 81
Less than 5 years 67 58 59
82 54 64
93 65 57
Five up to 10 years 92 60 49
97 68 72
58 75 60
10 years or more 78 57 45
91 47 59
a) Construct ANOVA table.
b) At the 5% significance level, is there interaction between industry and work
experience?
c) At the 5% significance level, can you conclude that job satisfaction differs by
industry?
d) At the 5% significance level, can you conclude that job satisfaction differs by work
experience?

Answer:
1)
a) ;
b)
c)
d)

2)
a) ( )
b)
c)

3)
a)
 b) ANOVA Table:
Source of
SS df MS F
Variation
Between Groups 4,895.15 5 979.03 37.85
Within Groups 620.80 24 25.87
Total 5,515.95 29
c) ( )
d)

4)
a) ; ; ;
b) ; ;
c) ANOVA Table:
Source of
SS df MS F
Variation
Rows 702.00 3 234.00 7.63
Columns 8.67 2 4.33 0.14
Error 184.00 6 30.67
Total 894.67 11
d)
e)

5)
a) ANOVA Table:
Source of
SS df MS F
Variation
Rows 383.63 2 191.815 1.844
Columns 2591.19 2 1295.593 12.453
Interaction 622.59 4 155.648 1.496
Error 1872.67 18 104.037
Total 5470.07 26
b)
c)
d)