KINGFISHER SCHOOL OF BUSINESS AND FINANCE

SENIOR HIGH SCHOOL

PT 4.2: Two Sample Test
1. An advertising executive suspects that there is a higher proportion of households which own VCR's residing in places with
cable systems than there are for households residing in places without cable systems. The basis of this suspicion is the broader
offering of premium programming available for taping in places with a cable system. The executive commissions a survey,
which results in random samples of 165 households located in a cable system and 150 households, located outside any cable
system. Of the households in the cable system, 54 own VCR's; outside the cable system, 33 households own VCR's. The
executive chooses 0.05 as the significance level. Can the executive reasonably conclude that the ownership of VCR's is higher in
cable systems?
2. A new SAT preparation program claims that students will improve their verbal scores with a practice test after one month
on the program. To validate their claim, they recorded the starting and practice verbal SAT scores of 12 individuals after a one-
month period. The results are shown in the following table. Use = 0.01 as your level of significance.
Starting SAT Score Practice SAT Score
450 460
390 390
425 430
510 500
520 525
440 420
550 570
610 625
490 510
475 485
535 540
500 500
3. A new diet program claims that clients will lose weight after 7 days on the program. To validate their claim, they recorded
the starting and ending weight of 11 individuals over a 7-day period. The results are shown in the following table. Use =
0.05 as your level of significance.

Starting Weight Ending Weight

221 218
215 210
206 204
236 241
214 212
256 250
240 245
222 218
239 230
218 215
229 220
4. The general manager of a chain of fast food chicken restaurants wants to determine how effective their promotional
campaigns are. In these campaigns "20% off" coupons are widely distributed. These coupons are only valid for one week. To
examine their effectiveness, the executive records the daily gross sales (in $1,000s) in one restaurant during the campaign and
during the week after the campaign ends. The data is shown below. Use = 0.05 as your level of significance.
 KINGFISHER SCHOOL OF BUSINESS AND FINANCE
SENIOR HIGH SCHOOL
PT 4.2: Two Sample Test

5. A slacks manufacturer is deciding whether to purchase a new method for bonding seams together. Before purchasing a new
method that bonds, or glues, the seams together, the manufacturer wishes to determine whether or not the "bonded" seams
can withstand more pulling stress than standard seams sewn with thread. The creator of the new method provides a
demonstration machine and supplies for the slacks maker to test. Two samples of the slacks produced are taken. Each pair of
slacks has the seams tested in an application of force to determine the breaking point (in lbs.) for the seam. The sample results
are:

At the 0.05 level of significance, is the gluing of seams better than sewing?

6. Do government employees take longer coffee breaks than private sector workers? That is a question that interested a
management consultant. To examine the issue, he took a random sample of ten government employees and another random
sample of ten private sector workers and measured the amount of time (in minutes) they spent in coffee breaks during the
day. The results are listed below. Assume that the two populations are normally distributed.

Do these data provide sufficient evidence at the 5% significance level to support the consultant's claim?

7. From the top 1000 companies in valuation, a comparison of the mean dividend yield of the top and bottom ten electric
utility companies is desired. Let 1 = top ten, and 2 = bottom ten, electric utility companies respectively. The data shown below
are for two independent samples, which are drawn at random from populations that are normally distributed
 KINGFISHER SCHOOL OF BUSINESS AND FINANCE
SENIOR HIGH SCHOOL
PT 4.2: Two Sample Test

At the 0.05 level of significance, is there a significant difference between top 10 and bottom 10?

8. A battery manufacturer claims that their new “long-lasting” battery has an average life that is significantly longer than their
competitor’s “regular” battery. Both types of batteries were tested and the number of hours each battery lasted is shown in the
following table. Use 0.01 as your LS.

Long-Lasting Battery Regular Battery

(Sample 1) (Sample 2)
51 42
44 29
58 51
36 38
48 39
53 44
57 35
40 40
49 48
44 45
60
50

9. A trap and skeet shooting club purchases clay pigeons. These are quite fragile and often break in the box during shipment
without any outward sign of breakage. Even as the pigeons are loaded into the throwing machine, broken or cracked pigeons
may not be noticed. Each pigeon broken is a net loss to the club so the club is anxious to purchase from suppliers who have a
record of little or no breakage in shipping and handling. Two suppliers of clay pigeons are contacted and asked for price
quotes. Supplier 1 quotes a higher price than Supplier 2 but says that the higher price is the result of better packaging and thus
more usable pigeons per case. The shooting club manager decides to purchase 10 cases from both suppliers. Each case has 250
pigeons. Careful records are maintained on each case as to the number of good pigeons. The records after the cases were used
are as follows:
 KINGFISHER SCHOOL OF BUSINESS AND FINANCE
SENIOR HIGH SCHOOL
PT 4.2: Two Sample Test

At the 5% significance level. What is your conclusion?

10. A regional automotive parts chain store firm wants to improve the sales of tune-up supplies. It believes that a TV ad with a
popular local, but offbeat, know-it-all actor might be able to affect their sales. Before the ads are run on TV, the company
randomly samples eight of its weekly sales from past years. Following the ad campaign, eight weeks of sales were sampled.
Weekly sales are approximately normally distributed and the population standard deviations are equal. Their hypothesis test
is: Did the TV ad campaign help or hurt sales? To answer this question, the company plans to use a 0.05 significance level. The
results of the two samples are: