Homework Assignment #6
Total: 15 points
Instructions:
1. Read the instructions for each question carefully. Failure to follow the
instructions will receive zero for this homework.
2. Except for Question 1, the rest of the questions require PhStat
or formulaic solutions. You may submit your homework in either
excel or word file. If it is a word file, cut and paste your PhStat
solutions. Do not convert it to PDF file.
3. Properly label your final answers in excel or word file.
Question 1: 1 pt
If you use a 0.01 level of significance in a two-tail hypothesis test, state your
DECISION RULE for rejecting Ho: µ = 12.5 if you use a Z test?
Note: A decision rule is different from a decision. A decision states whether
you reject or not the null hypothesis. A decision rule sets the parameter how
you’ll decide on the null hypothesis.
Question 2: 6 points
Note: You have to consider the sub-problems as one integrated problem.
Review the practice problems these past two weeks.
The quality-control manager at a compact fluorescent light bulb (CFL) factory
needs to determine whether the mean life of a large shipment of CFLs is
equal to 7,500 hours. The population standard deviation is 1,000 hours. A
random sample of 64 CFLs indicate a sample mean life of 7,250 hours.
1. At 0.05 level of significance, state your decision.
2. Using the critical value approach, is there evidence that the mean life
is different from 7,500 hours?
3. Determine the p-value and interpret its meaning.
4. Construct and interpret a 95% confidence interval estimate of the
population mean life of the CFLs.
Question 3: 4 points
Note: You have to consider the sub-problems as one integrated problem.
Review the practice problems these past two weeks.
A marketing researcher wants to estimate the mean amount spent ($) on
[Link] by Amazon Prime member shoppers. Suppose a random
sample of 100 Amazon Prime member shoppers who recently made a
purchase on [Link] yielded a mean amount spent of $1,500 and a
standard deviation of $200.
1. Using a 0.05 level of significance, state your decision.
2. Using the critical value approach, is there evidence that the population
mean amount spent on [Link] by Amazon Prime member
shoppers is less than $1,475?
3. Determine the p-value and interpret its meaning.
Question 4: 4 points
Note: You have to consider the sub-problems as one integrated problem.
Review the practice problems these past two weeks.
A cellphone provider has the business objective of wanting to determine the
proportion of subscribers who would upgrade to a new cellphone with
improved features if it were made available at a substantially reduced price.
Data are collected from a random sample of 550 subscribers, and the result
indicate that 150 of the subscribers would upgrade to a new cellphone at
reduced cost.
1. State the null and alternative hypotheses. Observe the proper format.
2. At 0.05 level of significance, state your decision.
3. Is there evidence that more that 20% of the customers would upgrade
to a new cellphone at a reduced cost?
