ADM 2623

Lecture 10 Practicing Problems

1. The average time it takes for a person to experience pain relief from aspirin is 25 minutes. A new
ingredient is added to help speed up relief. Let µ denote the average time to obtain pain relief with the
new product. An experiment is conducted to verify if the new product is better. Which of the following
are the correct null and alternative hypotheses?

(a) Ho : µ = 25 vs H1 : µ 6= 25
(b) Ho : µ ≥ 25 vs H1 : µ < 25
(c) Ho : µ < 25 vs H1 : µ ≥ 25
(d) Ho : µ < 25 vs H1 : µ > 25
(e) Ho : µ 6= 25 vs H1 : µ = 25

2. The profit per new car sold by a Winnipeg automobile dealer varies from car to car. The average profit
per sale tabulated for the past 60 days was $491 with a standard deviation of $190. We want to test if
there is sufficient evidence to indicate that the average profit per sale is greater than $480. Which of the
following is the appropriate null and alternative hypotheses for the test?

(a) Ho : µ ≤ 491 vs H1 : µ > 480

(b) Ho : µ ≥ 480 vs H1 : µ < 480
(c) Ho : µ ≤ 480 vs H1 : µ > 480
(d) Ho : µ = 480 vs H1 : µ 6= 480
(e) Ho : µ = 491 vs H1 : µ 6= 491

3. The manager of an airport has the distinct impression that the monthly maintenance costs of planes used
in agricultural work does not equal the projected average of $500 per plane. A sample of 32 planes is
taken. The sample shows average costs of $592 per plane, with a standard deviation of $101.

(a) What is the appropriate null and alternate hypotheses to test the manager’s claim?
(b) At the 2% level of significance (i.e., 98% level of confidence), should the null hypothesis be ac-
cepted or rejected? Explain why.

4. The average growth of a certain variety of pine tree is 10.1 inches in three years. A biologist claims that
a new variety will have a greater three-year growth. A random sample of 35 of the new variety has an
average three-year growth of 10.8 inches and a standard deviation of 2.1 inches.

(a) What is the appropriate null and alternate hypotheses to test the biologist’s claim?
(b) At the 6% level of significance (i.e., 94% level of confidence), should the null hypothesis be ac-
cepted or rejected? Explain why.
(c) What is the p-value for the previous test?

5. In a test of Ho : µ = 100 against H1 : µ 6= 100, a sample of size 40 produces a sample mean of 103 and
a p-value of 0.08. Thus, at the 0.05 level of significance (i.e., 95% level of confidence):

(a) there is sufficient evidence to conclude that µ 6= 100.

(b) there is sufficient evidence to conclude that µ = 100.

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 (c) there is insufficient evidence to conclude that µ = 100.
(d) there is insufficient evidence to conclude that µ 6= 100.
(e) there is sufficient evidence to conclude that µ = 103.

6. In a test of Ho : µ = 100 against H1 : µ 6= 100, a sample of size 80 produces z=0.8 for the value of the
test statistic. What is the p-value of the this test?