1. (1 point) The Dick Tracy Co. has developed micro-miniaturized circuitry that will enable them to produce a wristwatch-sized video-telecommunicator. Research and development costs are believed to be high, and the company is uncertain whether it should proceed. The company has a strategic alliance with Cells-R-Us, a national provider of cellular telephone services, so a moderate-to-large sample of current cell phone customers is possible. The Marketing Department of the Dick Tracy Co. has developed a survey, which contains a list of possible features of next-generation telecommunicators, including compactness, ease of use, internet access, audio downloading/playing, video image downloading/video imaging, voice messaging, text messaging, et al. Survey respondents will be asked to rank order these features, first on the basis of personal preference, and then on the basis of willingness to pay a premium for them. From the perspective of the Dick Tracy Co., what are a null and an alternative hypothesis based on the perceived results of the survey?

2. (4 points) A TV manufacturer purchases picture tubes from independent suppliers, and contractually requires that the tubes have an average life of at least 550 hours. The firm received a shipment of tubes from a supplier, tested 25 tubes, and found that the average tube life was 535 hours with a sample standard deviation s = 37 hours.

1. What is the appropriate hypothesis test to determine if the shipment should be accepted or rejected? State the hypotheses.
2. What is the test statistic? Compute its value.
3. What is the critical value if the hypothesis test is conducted at the 5% level of significance? How does the computed value of the test statistic (from b.) compare with the critical value? Show on a sketch.
4. Should the shipment be accepted or rejected? Why?

The solution examines hypothesis testing and determines test statistics. The critical value of a hypothesis is determine with a 5% level of significance.

At a certain university, the average cost of books per student was $400 per student last semester. In a sample of 40 students this semester, their average cost was $430 with a standard deviation of $80. The Dean of Students believes that the costs are greater this semester. What is the test value for this hypothesis?

1. Tests of hypothesis for two populations. List one teststatistic that could be used for comparing two populations with hypothesistesting. Can you think of an example where this could be used?
2. Contrary to major television media popular belief, the United States does much good for the world. For example, the United State

Can the formal hypothesistesting approach be used for nonparametric tests? How are parametric and nonparametric statistics different? How are parametric and nonparametric statistics similar?

A statistician was testing the following hypotheses:
Ho: μ = 500 vs. Ha: μ ≠ 500.
The p-value approach was to be used. A sample of size 49 gave a sample mean of 508. Given that σ = 30 2, and α = 0.01, find the p-value, and write your conclusion.

Ho: u = 50
H1: u not = 50
The sample mean is 49, and the sample size is 36. the population standard deviation is 5. Use the .05 significance level.
a. Is this a one or two tailed test.
b. What is the decision rule?
c. What is the value of the teststatistic?
d. What is your decision regarding Ho?
e. What is the p-value

The following information is available.
H0: 10
H1: > 10
The sample mean is 12 for a sample of 36. The population standard deviation is 3. Use the .02 significance level.
(a) State the null hypothesisand the alternate hypothesis. (b) State the decision rule. (c) Compute the value of the teststatistic. (d) What is your

What are the four assumptions for the chi-square tests?
What are the hypothesis when conducting the chi-square tests for goodness-of-fit?
Why is there just one critical value for a chi-square test even when the hypothesis is a two-tailed test?

A pharmaceutical manufacturer is concerned that the mean impurity concentration in pills should not excess 2%. It is known that impurity concentrations follow a normal distribution with a population standard deviation 0.32%. A random sample of 64 pills from a production run was checked, and the sample mean impurity concentration

Perform hypothesistesting on one variable's data. (Choose either the intrinsic or extrinsic column.) Perform a t-test by formulating a null and an alternative statement, choosing an acceptable significance value, determining the appropriate critical value, selecting the teststatisticand determining its value from the sample d