Quantitative Analysis

Prof. Sharad Borle

Assignment 4
Please Note: This assignment is due by the beginning of the next class (Sunday, 3nd
January).
You may do the assignment either individually or a group of not more than two persons. If
you do the assignment in a pair please make sure that you only submit one assignment for
both the persons, however make sure both names are written on the submitted
assignment.
Please submit a single word file. If you wish to include excel graphs please copy and paste
the graph in this single word file. We will collect hard copies of your assignments.

This fourth homework assignment gives you practice applying the hypothesis test
procedure.

Problem 1
A random sample of 1,562 undergraduates enrolled in marketing courses was
asked to respond on a scale from one (strongly disagree) to seven (strongly
agree) to the proposition Advertising helps raise our standard of living. The
sample mean response was 4.27 and the sample standard deviation was 1.32.
Test at = 1% level, the null hypothesis that the population mean is equal to 4.0.

Problem 2
A manufacturer claims that through the use of a fuel additive, automobiles should
achieve on average an additional 3 miles per gallon of gas and at the minimum
an average greater than 2.5 miles per gallon. A random sample of 150
automobiles was used to evaluate this product. The sample mean increase in
miles per gallon achieved was 2.85 and the sample standard deviation was 1.30
miles per gallon. Is your evidence consistent with the two claims that the
manufacturer is making?

Assignment 4

Quantitative Analysis
Prof. Sharad Borle

Problem 3
In this problem, you will work with age data for men and women in an MBA Class
(from an East Coast B School). The first data set consists of the ages of 40 men
randomly chosen with replacement from the Class; the second data set consists
of the ages of 40 women randomly chosen with replacement from this Class. The
Excel spreadsheet is called "agedata.xlsx"; it contains the two data sets. Test
the hypothesis that the mean age of men is 34. Use =0.05. After testing the
hypothesis, make sure to write out your conclusions in terms of the question, i.e.
write something like The data indicates that the average age of men in the class
is not 34 or The data fails to reject the claim that the average age of men is 34.

Assignment 4