# Testing of hypothesis - Mean

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14) (a) state the decision rule, (b) compute the pooled estimate of the population variance, (c) compute the test statistic, (d) state your decision about the null hypothesis, and (e) estimate the p-value.

The null and alternate hypotheses are:

A random sample of 15 observations from the first population revealed a sample mean of 350 and a sample standard deviation of 12. A random sample of 17 observations from the second population revealed a sample mean of 342 and a sample standard deviation of 15. At the .10 significance level, is there a difference in the population means?

17) Note: Use the five-step hypothesis testing procedure for the following exercise.

Ms. Lisa Monnin is the budget director for Nexus Media, Inc. She would like to compare the daily travel expenses for the sales staff and the audit staff. She collected the following sample information.

Sales ($)

131

135

146

165

136

142

Audit ($)

130

102

129

143

149

120

139

At the .10 significance level, can she conclude that the mean daily expenses are greater for the sales staff than the audit staff? What is the p-value?

21) Note: Use the five-step hypothesis testing procedure to solve the following exercises.

The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 12 salespeople were selected at random, and their weekly incomes before and after the plan were recorded.

Salesperson Before After

Sid Mahone $320 $340

Carol Quick 290 285

Tom Jackson 421 475

Andy Jones 510 510

Jean Sloan 210 210

Jack Walker 402 500

Peg Mancuso 625 631

Anita Loma 560 560

John Cuso 360 365

Carl Utz 431 431

A. S. Kushner 506 525

Fern Lawton 505 619

43) Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, they use different media to reach potential buyers. The mean annual family income for 75 people making inquiries at the first development is $150,000, with a standard deviation of $40,000. A corresponding sample of 120 people at the second development had a mean of $180,000, with a standard deviation of $30,000. At the .05 significance level, can Fairfield conclude that the population means are different?

Note: Methods of computation could include the usage of Excel®, SPSS®, Lotus®, SAS®, MINITAB®, or by hand computation.

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