Problem 1

A computer manufacturing company wants to estimate the mean time

to repair a particular fault. Five computers with the same fault are
chosen at random from the companys records and the times taken, in
seconds, are 205 310 405 195 320
Calculate unbiased estimates of the mean and the variance of the
population of repairs times from which this sample has been taken.
Stating hypotheses, test at 5% level of significance; whether or not
the mean time to repair is 270 seconds (state any assumption that
you have used).
Problem 2
A company issues questionnaires to clients to obtain feedback on the
clarity of their brochure. It is thought that 5% of clients dont find the
brochure helpful.
A random sample of 50 feedbacks is taken and 42 of these have found
the brochure to be helpful.
Identify the population, parameter and the statistic in this situation.
Write down the sampling distribution of this statistic.
Using p value, stating hypotheses clearly, carry out a test at 5% level
of significance.
Problem 3
As part of a research project into the role played by cholesterol in the
development of heart disease a random sample of 100 patients was
put on a special fish-based diet. A different random sample of 80
patients was kept on a standard high-protein low fat diet. After
several weeks their blood cholesterol was measured and the results
summarized in the table below.
Group Sample size Mean drop in cholesterol (mg/dl) Standard deviation

Special diet 100 75 22

Standard diet 80 64 31

Stating your hypotheses clearly and using a 5% level of significance, test whether
or not the special diet is more effective in reducing blood cholesterol levels than
the standard diet. State any assumptions you made in order to carry out this test.
Problem 4
The reliability of two types of machines used in the same manufacturing process
is to be tested. The first machine failed to operate correctly in 90 out of 300 trials
while the second type failed to operate correctly in 50 out of 250 trials.
1. Give a point estimate for the difference between the population proportions of
these machines.
2. Calculate the pooled estimate of the population proportion
3. Carry out a hypothesis test to check whether there is a statistically significant
difference in reliability for the two types of machines using a 0 .10 level of
significance.
Problem 5
Suppose we observe drivers at an intersection with a stop sign. We record two
pieces of information: whether the driver stops at the stop sign and whether the
driver is talking on a cell phone. The question we want to answer is whether
drivers are less likely to come to come to a complete stop at the stop sign when
talking on a cell phone compared to when drivers are not talking on a cell
phone.
Here is the data.

Cell phone No cell phone

Stop 50 150
Dont stop 200 100

The question is really whether the percentage of drivers who stopped while talking on a cell
phone is significantly different from the percentage of drivers who stopped while not
talking on a cell phone
Problem 6
In a biological experiment on pea-breeding, Mendel obtained the
following frequency of seeds. Round & yellow- 315; wrinkled & yellow-
101; Round & green- 108; wrinkled & green- 32.
Theory predicts that frequencies should be in the ratio 9:3:3:1.
Examine the correspondence between theory and observation.
Problem 7
A detergent manufacturer wants to predict demand for its brand
CLEAN to manage its inventory more effectively and to make revenue
projections. The company has gathered the following data taken over
the last 30 sales periods (each sales period is defined to be a four week
period) to develop a prediction model for demand of CLEAN.
y = demand for the large sized bottle of CLEAN (in hundreds of
thousands of bottles) in the sales period
x1 = the price (in $) of CLEAN as offered by the company in the sales
period

Regression Analysis: Demand versus Price

The regression equation is

Demand = 21.6 - 3.55 Price

Predictor Coef SE Coef t p

Constant 21.624 4.711 _________ 0.000

Price -3.545 1.261 __________ 0.009

Std Error = 0.612239 R-Sq = 22.0%

Answers to the following questions:
a) What does R-Sq = 22.0% mean?
b) How do you interpret Std Error?
c) Fill in the blanks in the table.
d) How do you interpret p-value of the explanatory variable price?
e) Do you feel any need for the improvement of the model? Justify your
answer
ANOVA
Significance
df SS MS F F
Regression 1 2.963146 2.963146 7.905155 0.008902
Residual 28 10.49544 0.374837
Total 29 13.45859