Assignment 2 (LO3)

25 Marks

1. According to a recent survey, Americans get a mean of 7 hours of sleep per night. A random
sample of 50 students at West Virginia University revealed the mean length of time slept last
night was 6 hours and 45 minutes. The standard deviation of the sample was 0.8 hour. At the 5%
level of significance, is it reasonable to conclude that students at West Virginia sleep less than
the typical American? Compute the p-value.

2. According to the Census Bureau, 3.24 people reside in the typical American household. A sample
of 25 households in Arizona retirement communities showed the mean number of residents per
household was 2.80 residents. The standard deviation of this sample was 1.30 residents. At
the .01 significance level, is it reasonable to conclude the mean number of residents in the
retirement community household is less than 3.24 persons?

3. The number of “destination weddings” has skyrocketed in recent years. For example, many
couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently
advertised in Bride Magazine that the cost of a Caribbean wedding was less than $30,000. Listed
below is a total cost in $000 for a sample of 8 Caribbean weddings.
29.5 29.8 31.9 29.4 29.3 30.1 29.7 29.5
At the .05 significance level, is it reasonable to conclude the mean wedding cost is less than
$30,000 as advertised?

4. For a recent year, the mean fare to fly from Charlotte, North Carolina, to Chicago, Illinois, on a
discount ticket was $270. A random sample of 13 round-trip discount fares on this route last
month shows:
$325 $296 $295 $320 $325 $270 $260 $290 $295 $275 $285 $290 $335
At the .01 significance level, can we conclude that the mean fare has increased? What is the p-
value?

5. The American Water Works Association reports that the per capita water use in a single-family
home is 67 gallons per day. Legacy Ranch is a relatively new housing development. The builders
installed more efficient water fixtures, such as low-flush toilets, and subsequently conducted a
survey of the residences. Twenty five owners responded, and the sample mean water use per
day was 65 gallons with a standard deviation of 9.8 gallons per day. At the .10 level of
significance, is that enough evidence to conclude that residents of Legacy Ranch use less water
on average?