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Hypothesis Testing: Test of Significance of Mean (Large Sample)
Hypothesis Testing: Test of Significance of Mean (Large Sample)
1. Many recent changes have affected the real estate market.4 A study
was undertaken to determine customer satisfaction from real estate
deals. Suppose that before the changes, the average customer
satisfaction rating, on a scale of 0 to 100, was 77. A survey
questionnaire was sent to a random sample of 50 residents who
bought new plots after the changes in the market were instituted, and
the average satisfaction rating for this sample was found to be 84; the
sample standard deviation was found to be 28. Use an alpha value of
your choice, and determine whether statistical evidence indicates a
change in customer satisfaction. If you determine that a change did
occur, state whether you believe customer satisfaction has improved
or deteriorated.
5. The following data (in pounds), which were selected randomly from a
normally distributed population of values, represent measurements of a
machine part that is supposed to weigh, on average, 8.3 pounds.
8.1 8.4 8.3 8.2 8.5 8.6 8.4 8.3 8.4 8.2
8.8 8.2 8.2 8.3 8.1 8.3 8.4 8.5 8.5 8.7
Use these data and to test the hypothesis that the parts average 8.3 pounds.
6. Major cities around the world compete with each other in an effort to attract
new businesses. Some of the criteria that businesses use to judge cities as
potential locations for their headquarters might include the labor pool; the
environment, including work, governmental, and living; the tax structure, the
availability of skilled/educated labor, housing, education, medical care; and
others. Suppose in a study done several years ago, the city of Atlanta
received a mean rating of 3.51 (on a scale of 1 to 5 and assuming an interval
level of data) on housing, but that since that time, considerable residential
building has occurred in the Atlanta area such that city leaders feel the mean
might now be higher. They hire a team of researchers to conduct a survey of
businesses around the world to determine how businesses now rate the city
on housing (and other variables). Sixty-one businesses take part in the new
survey, with a result that Atlanta receives a mean response of 3.72 on
housing with a sample standard deviation of 0.65. Assuming that such
responses are normally distributed, use a 1% level of significance and these
data to test to determine if the mean housing rating for the city of Atlanta by
businesses has significantly increased.
Test of Significance of Proportions