1) According to a survey by Accountemps, 48% of executives believe that employees are most productive on Tuesdays.

Suppose 200
executives are randomly surveyed.
a. What is the probability that fewer than 90 of the executives believe employees are most productive on Tuesdays?
b. What is the probability that more than 100 of the executives believe employees are most productive on Tuesdays?
c. What is the probability that more than 80 of the executives believe employees are most productive on Tuesdays?

2) Use the following data to construct a 99% confidence interval for the population mean.
16.4 17.1 17.0 15.6 16.2
14.8 16.0 15.6 17.3 17.4
15.6 15.7 17.2 16.6 16.0
15.3 15.4 16.0 15.8 17.2
14.6 15.5 14.9 16.7 16.3
Assume x is normally distributed. What is the point estimate for the population mean?

3) According to the Stern Marketing Group, 9 out of 10 professional women say that financial planning is more important today than
it was five years ago. Where do these women go for help in financial planning? Forty-seven percent use a financial advisor (broker,
tax consultant, financial planner). Twenty-eight percent use written sources such as magazines, books, and newspapers. Suppose
these figures were obtained by taking a sample of 560 professional women who said that financial planning is more important today
than it was five years ago.
a. Construct a 95% confidence interval for the proportion of professional women who use a financial advisor. Use the percentage
given in this problem as the point estimate.
b. Construct a 90% confidence interval for the proportion of professional women who use written sources. Use the percentage
given in this problem as the point estimate.

4) Use the data given and a 1% level of significance to test the hypotheses that pollution level in the state has reduced in last 10 years.
The table below shows the data from 9 district in the state.

District Pollution in 2018 Pollution in 2008

1 38 22
2 27 28
3 30 21
4 41 38
5 36 38
6 38 26
7 33 19
8 35 31
9 44 35

5) Arthur Andersen Enterprise Group/National Small Business United, Washington, conducted a national survey of small-business
owners to determine the challenges for growth for their businesses. The top challenge, selected by 46% of the small business owners,
was the economy. A close second was finding qualified workers (37%). Suppose 15% of the small-business owners selected both
the economy and finding qualified workers as challenges for growth. A small-business owner is randomly selected.
a. What is the probability that the owner believes the economy is a challenge for growth if the owner believes that finding
qualified workers is a challenge for growth?
b. What is the probability that the owner believes that finding qualified workers is a challenge for growth if the owner believes
that the economy is a challenge for growth?
c. Given that the owner does not select the economy as a challenge for growth, what is the probability that the owner believes that
finding qualified workers is a challenge for growth?
d. What is the probability that the owner believes neither that the economy is a challenge for growth nor that finding qualified
workers is a challenge for growth?

6) According to the U.S. Bureau of Labor Statistics, the average weekly earnings of a production worker in 1997 were $424.20.
Suppose a labor researcher wants to test to determine whether this figure is still accurate today. The researcher randomly selects 54
production workers from across the United States and obtains a representative earnings statement for one week from each. The
resulting sample average is $432.69. Assuming a population standard deviation of $33.90, and a 5% level of significance, determine
whether the mean weekly earnings of a production worker have changed.

7) Based on population figures and other general information on the U.S. population, suppose it has been estimated that, on average, a
family of four in the United States spends about $1135 annually on dental expenditures. Suppose further that a regional dental
association wants to test to determine if this figure is accurate for their area of the country. To test this, 22 families of four are
randomly selected from the population in that area of the country and a log is kept of the family’s dental expenditures for one year.
The resulting data are given below. Assuming that dental expenditures are normally distributed in the population, use the data and
an alpha of .05 to test the dental association’s hypothesis.
1008 812 1117 1323 1308 1415
831 1021 1287 851 930 730
699 872 913 944 954 987
1695 995 1003 994
8) In a small town, two lawn companies fertilize lawns during the summer. Tri-State Lawn Service has 72% of the market. Thirty
percent of the lawns fertilized by Tri-State could be rated as very healthy one month after service. Greenchem has the other 28% of
the market. Twenty percent of the lawns fertilized by Greenchem could be rated as very healthy one month after service. A lawn
that has been treated with fertilizer by one of these companies within the last month is selected randomly. If the lawn is rated as
very healthy, what are the revised probabilities that Tri-State or Greenchem treated the lawn?

9) A large manufacturing company investigated the service it received from suppliers and discovered that, in the past, 32% of all
materials shipments were received late. However, the company recently installed a just-in-time system in which suppliers are linked
more closely to the manufacturing process. A random sample of 118 deliveries since the just-in-time system was installed reveals
that 22 deliveries were late. Use this sample information to test whether the proportion of late deliveries was reduced significantly.
Let level of significance be 0.05.

10) A consumer test group wants to determine the difference in gasoline mileage of cars using regular unleaded gas and cars using
premium unleaded gas. Researchers for the group divided a fleet of 100 cars of the same make in half and tested each car on one
tank of gas. Fifty of the cars were filled with regular unleaded gas and 50 were filled with premium unleaded gas. The sample
average for the regular gasoline group was 21.45 miles per gallon (mpg), and the sample average for the premium gasoline group
was 24.6 mpg. Assume that the population standard deviation of the regular unleaded gas population is 3.46 mpg, and that the
population standard deviation of the premium unleaded gas population is 2.99 mpg. Construct a 95% confidence interval to estimate
the difference in the mean gas mileage between the cars using regular gasoline and the cars using premium gasoline.

11) A company’s auditor believes the per diem cost in Nashville, Tennessee, rose significantly between 1999 and 2009. To test this
belief, the auditor samples 51 business trips from the company’s records for 1999; the sample average was $190 per day, with a
population standard deviation of $18.50. The auditor selects a second random sample of 47 business trips from the company’s
records for 2009; the sample average was $198 per day, with a population standard deviation of $15.60. If he uses a risk of
committing a Type I error of .01, does the auditor find that the per diem average expense in Nashville has gone up significantly?

12) A study by Peter D. Hart Research Associates for the Nasdaq Stock Market revealed that 43% of all American adults are
stockholders. In addition, the study determined that 75% of all American adult stockholders have some college education. Suppose
37% of all American adults have some college education. An American adult is randomly selected.
a. What is the probability that the adult does not own stock?
b. What is the probability that the adult owns stock and has some college education?
c. What is the probability that the adult owns stock or has some college education?
d. What is the probability that the adult has neither some college education nor owns stock?
e. What is the probability that the adult does not own stock or has no college education?
f. What is the probability that the adult has some college education and owns no stock?

13) Based on an indication that mean daily car rental rates may be higher for Boston than for Dallas, a survey of eight car rental
companies in Boston is taken and the sample mean car rental rate is $47, with a standard deviation of $3. Further, suppose a survey
of nine car rental companies in Dallas results in a sample mean of $44 and a standard deviation of $3. Use level of significance =
0.05 to test to determine whether the average daily car rental rates in Boston are significantly higher than those in Dallas. Assume
car rental rates are normally distributed and the population variances are equal.

14) The average number of annual trips per family to amusement parks in the United States is Poisson distributed, with a mean of 0.6
trips per year. What is the probability of randomly selecting an American family and finding the following?
a. The family did not make a trip to an amusement park last year.
b. The family took exactly one trip to an amusement park last year.
c. The family took two or more trips to amusement parks last year.
d. The family took three or fewer trips to amusement parks over a three-year period.
e. The family took exactly four trips to amusement parks during a six-year period.

15) Companies that recently developed new products were asked to rate which activities are most difficult to accomplish with new
products. Options included such activities as assessing market potential, market testing, finalizing the design, developing a business
plan, and the like. A researcher wants to conduct a similar study to compare the results between two industries: the computer
hardware industry and the banking industry. He takes a random sample of 56 computer firms and 89 banks. The researcher asks
whether market testing is the most difficult activity to accomplish in developing a new product. Some 48% of the sampled computer
companies and 56% of the sampled banks respond that it is the most difficult activity. Use a level of significance of .20 to test
whether there is a significant difference in the responses to the question from these two industries.

16) What is the first big change that American drivers made due to higher gas prices? According to an Access America survey, 30%
said that it was cutting recreational driving. However, 27% said that it was consolidating or reducing errands. If these figures are
true for all American drivers, and if 20 such drivers are randomly sampled and asked what is the first big change they made due to
higher gas prices,
a. What is the probability that exactly 8 said that it was consolidating or reducing errands?
b. What is the probability that none of them said that it was cutting recreational driving?
c. What is the probability that more than 7 said that it was cutting recreational driving?
17) A random sample of size 39 is taken from a population of 200 members. The sample mean is 66 and the population standard
deviation is 11.
Construct a 96% confidence interval to estimate the population mean.
What is the point estimate of the population mean?

18) According to Nielsen Media Research, approximately 67% of all U.S. households with television have cable TV. Seventy-four
percent of all U.S. households with television have two or more TV sets. Suppose 55% of all U.S. households with television have
cable TV and two or more TV sets. A U.S. household with television is randomly selected.
a. What is the probability that the household has cable TV or two or more TV sets?
b. What is the probability that the household has cable TV or two or more TV sets but not both?
c. What is the probability that the household has neither cable TV nor two or more TV sets?

19) One recent study showed that the average annual amount spent by an East Coast household on frankfurters was $23.84 compared
with an average of $19.83 for West Coast households. Suppose a random sample of 12 East Coast households showed that the
standard deviation of these purchases (frankfurters) was $7.52, whereas a random sample of 15 West Coast households resulted in
a standard deviation of $6.08. Do these samples provide enough evidence to conclude that the variance of annual frankfurter
purchases for East Coast households is greater than the variance of annual frankfurter purchases for West Coast households? Let
alpha be .05.

20) Suppose you are using a completely randomized design to study some phenomenon. There are five treatment levels and a total of
55 people in the study. Each treatment level has the same sample size. Complete the following ANOVA.

21) Tompkins Associates reports that the mean clear height for a Class A warehouse in the United States is 22 feet. Suppose clear
heights are normally distributed and that the standard deviation is 4 feet. A Class A warehouse in the United States is randomly
selected.
a. What is the probability that the clear height is greater than 17 feet?
b. What is the probability that the clear height is less than 13 feet?
c. What is the probability that the clear height is between 25 and 31 feet?

22) In one survey, successful female entrepreneurs were asked to state their personal definition of success in terms of several categories
from which they could select. Thirty-nine percent responded that happiness was their definition of success, 12% said that sales/profit
was their definition, 18% responded that helping others was their definition, and 31% responded that achievements/challenge was
their definition. Suppose you wanted to determine whether male entrepreneurs felt the same way and took a random sample of men,
resulting in the following data. Use the chi-square goodness-of-fit test to determine whether the observed frequency distribution of
data for men is the same as the distribution for women. Let alpha = .05.
Definition fo
Happiness 42
Sales/profit 95
Helping others 27
Achievements/challenge 63

23) Market researcher Gartner Dataquest reports that Dell Computer controls 27% of the PC market in the United States. Suppose a
business researcher randomly selects 130 recent purchasers of PC.
a. What is the probability that more than 39 PC purchasers bought a Dell computer?
b. What is the probability that between 28 and 38 PC purchasers (inclusive) bought a Dell computer?
c. What is the probability that fewer than 23 PC purchasers bought a Dell computer?
d. What is the probability that exactly 33 PC purchasers bought a Dell computer?

24) Shown here are the U.S. oil refineries with the largest capacity in terms of barrels per day according to the U.S. Energy Information
Administration. Use these as population data and answer the questions.
 a. What are the values of the mean and the median? Compare the answers and state which you prefer as a
measure of location for these data and why.
b. What are the values of the range and interquartile range? How do they differ?
c. What are the values of variance and standard deviation for these data?

25) Is the transportation mode used to ship goods independent of type of industry? Suppose the following contingency table represents
frequency counts of types of transportation used by the publishing and the computer hardware industries. Analyze the data by using
the chi-square test of independence to determine whether type of industry is independent of transportation mode. Let alpha = .05.

26) According to Nielsen Media Research, the average number of hours of TV viewing per household per week in the United States is
50.4 hours. Suppose the standard deviation is 11.8 hours and a random sample of 42 U.S. households is taken.
a. What is the probability that the sample average is more than 52 hours?
b. What is the probability that the sample average is less than 47.5 hours?
c. What is the probability that the sample average is less than 40 hours? If the sample average actually is less than 40 hours, what
would it mean in terms of the Nielsen Media Research figures?
d. Suppose the population standard deviation is unknown. If 71% of all sample means are greater than 49 hours and the population
mean is still 50.4 hours, what is the value of the population standard deviation?