There is one question in each of the four other tabs in this workbook.

The five step process must be used and documented to receive any
credit for the assignment. Place the completed steps below the problem
statements. Highlight your answer in yellow. Also, place your answers below.

Answer Q1: There is no significant difference between the delay in minutes of the given airlines.
Answer Q2: NO THE INVESTOR DOES NOT HAVE ENOUGH REASON TO REJECT THE COMPA
Answer Q3: THERE IS NO SIGNIFICANT DIFFERENCE AT SIGNIFICANCE LEVEL 0.05
 given airlines.
REJECT THE COMPANY'S CLAIM
LEVEL 0.05
Delta United The data show the number of minutes that delayed flights by Delta and United
45 34 Airlines. Is there a difference in the number of delayed minutes between the two ai
64 59 Use a 0.01 significance level and assume there is unequal variance in the two samp
42 43
33 30
66 3
105 32
45 42
28 85
38 30
85 48 Step 01: Set Hypothesis
75 110
45 50 H0:
33 10
50 26 Ha:
63 70
42 52
35 83 Step 02:
33 78 Assuming Unequal Variances of the Sample we choose T-Test Statistic
64 27 a=0.01
65 70
27 Step 3: Find the t-test statistic
90 T stat=0.306
38
52 Step 4: Compare tcalc and t crit
76 Tcalc < Tcrit(0.306 < 2.69)

Step 5:
There is no significant difference between the delay in minutes of the
 ights by Delta and United
ed minutes between the two airlines.
equal variance in the two samples.

t-Test: Two-Sample Assuming Equal Varianc

Mean
we choose T-Test Statistic Variance
Observations
Pooled Variance
Hypothesized Mean
df
t Stat
P(T<=t) one-tail
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail

he delay in minutes of the given airlines.

wo-Sample Assuming Equal Variances

Variable 1 Variable 2
52.8 50.6
404.378947368421 705.75
20 25
572.586046511628
0
43
0.306465115063339
0.380364806224502
2.41625012876297
0.760729612449003
2.69510207915768
An investment services company claims that the
average annual return on stocks within a certain
industry is 11.5%. An investor wants to test whether
this claim is true and collects a random sample of 50
stocks in the industry of interest. He finds that the
sample average annual return is 10.8% and that the
sample standard deviation is 3.4%. Does the investor
have enough evidence to reject the investment
company’s claim? (Use α=0.05)

CONCLUSION
N 50
SAMPLE MEAN(10.8%) 0.108
SAMPLE SD 3.4 % 0.034

STEP 1

Set Hypothesis:

H0: THE AVERAGE ANNUAL RETURN ON STOCKS IS 11.5%

Ha: THE AVERAGE ANNUAL RETURN ON STOCKS IS NOT 11.5%

STEP 2:

N= 50  Z-test (N>30) RIGHT TAILED

LEVEL OF SIGNIFICANCE (a)=0.05

Step 3: Compute Test Statistic.

Z CRIT 1.64485362695147
Z CRIT 1.645
STEP4 : DETERMINE Z CALC
Z CALC -1.4558081

STEP 5 : COMPARE Z CRITIC AND Z CALC

Z CALC < Z CRITIC DO NOT REJECT H0

NO THE INVESTOR DOES NOT HAVE ENOUGH REASON TO REJECT THE COMPANY'S CLAIM
 X-HO -0.007
SD/SQRT( 0.0048083

MPANY'S CLAIM
 Item CVS Kmart Rite-Aid Wegmans
Caltrate +D (600mg/60 tablets) 8.49 5.99 7.99 5.99
Centrum (130 tablets) 9.49 9.47 9.89 7.97
Cod liver oil (100 gel tablets) 2.66 2.59 1.99 2.69
Fish oil (1,000 mg, 60 tablets) 6.19 4.99 4.99 5.99
Flintstones Children's (60 tablets) 7.69 5.99 5.99 6.29
Folic acid (400 mcg/250 tablets) 2.19 2.49 3.74 2.69
One-a-Day Maximum (100 tablets) 8.99 7.49 6.99 6.99
One-a-Day Scooby (50 tablets) 7.49 5.99 6.49 5.47
Poly-Vi-Sol (drops, 50 ml.) 9.99 8.49 9.99 8.37
Vitamin B-12 (100 mcg/100tablets) 3.59 1.99 1.99 1.79
Vitamin C (500 mg/100tablets) 2.99 2.49 1.99 2.39
Vitamin E (200 IU/100tablets) 4.69 3.49 2.99 3.29
Zinc (50 mg/100 tablets) 2.66 2.59 3.99 2.79
Is there a difference in the mean price for vitamins at the retail outlets provided in
the "Vitamins" tab? Use alpha = .05.

Anova: Single Factor

SUMMARY
Groups Count Sum Average
CVS 13 77.11 5.931538
Kmart 13 64.05 4.926923
Rite-Aid 13 69.02 5.309231
Wegmans 13 62.71 4.823846

ANOVA
Source of Variation SS df MS
Between Groups 9.801621 3 3.267207
Within Groups 339.166 48 7.065959

Total 348.9677 51

CONCLUSION THERE IS NO SIGNIFICANT DIFFERENC

 Variance
8.475281
6.399056
8.124808
5.264692

F P-value F crit
0.462387 0.709857 2.798061

IFICANT DIFFERENCE IN MEAN(F< FCRITICAL)