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7. Carpetland salespersons average $8000 per week in sales.
Steve Contois, the firm’s
vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. a. Develop the appropriate null and alternative hypotheses. b. What is the Type I error in this situation? What are the consequences of making this error? c. What is the Type II error in this situation? What are the consequences of making this error? 8. Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the mean operating cost per hour. a. State the appropriate null and alternative hypotheses if the mean cost for the current production method is $220 per hour. b. What is the Type I error in this situation? What are the consequences of making this error? c. What is the Type II error in this situation? What are the consequences of making this error? d. What is the rejection rule using the critical value? What is your conclusion? 12. Consider the following hypothesis test: H0:μ ≥ 80 Ha:μ < 80 A sample of 100 is used and the population standard deviation is 12. Compute the p- value and state your conclusion for each of the following sample results. Use α = 0.01. a. x̄ = 78.5 b. x̄ = 77 c. x̄ = 75.5 d. x̄ = 81 15. According to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1056 in 2018. Consider the population of “last- minute” filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). a. A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of H0 will support the researcher’s contention. b. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience a population standard deviation of σ = $1600 may be assumed. What is p-value? c. At α = 0.05, what is your conclusion? d. Repeat the preceding hypothesis test using the critical value approach. 22. CCN and ActMedia provided a television channel targeted to individuals waiting in supermarket checkout lines. The channel showed news, short features, and advertisements. The length of the program was based on the assumption that the population mean time a shopper stands in a supermarket checkout line is 8 minutes. A sample of actual waiting times will be used to test this assumption and determine whether actual mean waiting time differs from this standard. a. Formulate the hypotheses for this application. b. A sample of 120 shoppers showed a sample mean waiting time of 8.4 minutes. Assume a population standard deviation of σ = 3.2 minutes. What is the p-value? c. At α = 0.05, what is your conclusion? d. Compute a 95% confidence interval for the population mean. Does it support your conclusion? 28. A shareholders’ group, in lodging a protest, claimed that the mean tenure for a chief executive officer (CEO) was at least nine years. A survey of companies reported in The Wall Street Journal found a sample mean tenure of x̄ =7.27 years for CEOs with a standard deviation of s = 6.38 years. a. Formulate hypotheses that can be used to challenge the validity of the claim made by the shareholders’ group. b. Assume 85 companies were included in the sample. What is the p-value for your hypothesis test? c. At α = 0.01, what is your conclusion? 37. The U.S. Bureau of Labor Statistics reports that 11.3% of U.S. workers belonged to unions in 2013. Suppose a sample of 400 U.S. workers is collected in 2018 to determine whether union efforts to organize have increased union membership. a. Formulate the hypotheses that can be used to determine whether union membership increased in 2018. b. If the sample results show that 52 of the workers belonged to unions, what is the p- value for your hypothesis test? c. At α = 0.05, what is your conclusion?