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Assignment

1. The document provides 20 practice problems related to quantitative tools for managers, including hypothesis testing of differences between two means, sampling, the central limit theorem, sampling distributions, hypothesis testing for single means, and type I and II errors. The problems cover topics like hypothesis testing, variance, standard deviation, z-tests, and probability.

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Qazi Junaid
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0% found this document useful (0 votes)
325 views3 pages

Assignment

1. The document provides 20 practice problems related to quantitative tools for managers, including hypothesis testing of differences between two means, sampling, the central limit theorem, sampling distributions, hypothesis testing for single means, and type I and II errors. The problems cover topics like hypothesis testing, variance, standard deviation, z-tests, and probability.

Uploaded by

Qazi Junaid
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1/ 3

Homework Activity # 4

Quantitative Tools for Managers

Fall 2016

Hypothesis Testing of Difference between two means:


1.A random sample of size n1 = 25, taken from a normal population with a standard deviation 1 = 5.2, has
a mean

x 1 = 81. A second random sample of size n = 36, taken from a different normal population
2

with a standard deviation 2 = 3.4, has a mean

x 2 = 76. Test the hypothesis that = against the


1
2

alternative, 12. Quote a P-value in your conclusion


2. A manufacturer claims that the average tensile strength of thread A exceeds the average tensile strength
of thread B by at least 12 kilograms. To test this claim, 50 pieces of each type of thread were tested under
similar conditions. Type A thread had an average tensile strength of 86.7 kilograms with a standard
deviation of 6.28 kilograms, while type B thread had an average tensile strength of 77.8 kilograms with a
standard deviation of 5.61 kilograms. Test the manufacturers claim using a 0.05 level of significance.
3. For testing H0: = 14, H1: 14, at = 0.05 level z-test is being considered. What sample size is
necessary in order for the probability to be 0.1 of falsely failing to reject H0 when the true population
mean differs from 14 by 0.5? From a preliminary population the estimated value of to be 1.25.
Sampling:
4. a) Show that the sample variance is unchanged if a constant c is added to or subtracted from each value
in the sample. b) Show that the sample variance becomes c 2 times its original value if each observation in
the sample is multiplied by c.
5. Verify that the variance of the sample 4, 9, 3, 6, 4, and 7 is 5.1, and using this fact, along with the
results of question 5, find (a) the variance of the sample 12, 27, 9, 18, 12, and 21; (b) the variance of the
sample 9, 14, 8, 11, 9, and 12.
6. The tar contents of 8 brands of cigarettes selected at random from the latest list released by the
Federal Trade Commission are as follows: 7.3, 8.6, 10.4, 16.1, 12.2, 15.1, 14.5, and 9.3 milligrams.
Calculate (a) the mean; (b) the variance. (c) the coefficient of variation
Central Limit Theorem:
7. If a certain machine makes electrical resistors having a mean resistance of 40 ohms and a standard
deviation of 2 ohms, what is the probability that a random sample of 36 of these resistors will have a
combined resistance of more than 1458 ohms?
8. A manufacturing process produces cylindrical component parts for the automotive industry. It is
important that the process produce parts having a mean diameter of 5.0 millimeters. The engineer
involved conjectures that the population mean is 5.0 millimeters. An experiment is conducted in which
100 parts produced by the process are selected randomly and the diameter measured on each. It is known
that the population standard deviation is = 0.1 millimeter. The experiment indicates a sample average
diameter of

x = 5.027 millimeters. Does this sample information appear to support or refute the

engineers conjecture?
9. If all possible samples of size 16 are drawn from a normal population with mean equal to 50 and
standard deviation equal to 5, what is the probability that a sample mean
from

x 1.96 x

to

will fall in the interval

x 0.4 x ? Assume that the sample means can be measured to any degree

of accuracy.
Ans: 0.3159
10. If the standard deviation of the mean for the sampling distribution of random samples of size 36 from
a large or infinite population is 2, how large must the sample size become if the standard deviation is to be
reduced to 1.2?
Sampling distribution of Difference between Two Means:
11. The television picture tubes of manufacturer A have a mean lifetime of 6.5 years and a standard
deviation of 0.9 year, while those of manufacturer B have a mean lifetime of 6.0 years and a standard
deviation of 0.8 year. What is the probability that a random sample of 36 tubes from manufacturer A will

M.I.Shamsi

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25.11.2016

Homework Activity # 4

Quantitative Tools for Managers

Fall 2016

have a mean lifetime that is at least 1 year more than the mean lifetime of a sample of 49 tubes from
manufacturer B?
12. The mean score for freshmen on an aptitude test at a certain college is 540, with a standard deviation
of 50. Assume the means to be measured to any degree of accuracy. What is the probability that two
groups selected at random, consisting of 32 and 50 students, respectively, will differ in their mean scores
by (a) more than 20 points? (b) an amount between 5 and 10 points?
13. Two different box-filling machines are used to fill cereal boxes on an assembly line. The critical
measurement influenced by these machines is the weight of the product in the boxes. Engineers are quite
certain that the variance of the weight of product is 2 = 1 ounce. Experiments are conducted using both
machines with sample sizes of 36 each. The sample averages for machines A and B are

ounces and X B

X A

= 4.5

= 4.7 ounces. Engineers are surprised that the two sample averages for the filling

machines are so different. (a) Use the Central Limit Theorem to determine P ( X B
under the condition that

X A

0.2)

A =B . (b) Do the aforementioned experiments seem to, in any way,

strongly support a conjecture that the population means for the two machines are different? Explain using
your answer in (a).
The Probability of Type I and Type II errors:
14. Suppose that an allergist wishes to test the hypothesis that at least 30% of the public is allergic to
some cheese products. Explain how the allergist could commit (a) a type I error; (b) a type II error.
Ans: (a) Conclude that less than 30% of the public is allergic to some cheese products when, in fact,
30% or more is allergic. (b) Conclude that at least 30% of the public is allergic to some cheese
products when, in fact, less than 30% is allergic.
15. A dry cleaning establishment claims that a new spot remover will remove more than 70% of the spots
to which it is applied. To check this claim, the spot remover will be used on 12 spots chosen at random. If
fewer than 11 of the spots are removed, we shall not reject the null hypothesis that p = 0.7; otherwise, we
conclude that p > 0.7. Use Binomial Distribution to (a) Evaluate , assuming that p = 0.7. (b) Evaluate
for the alternative p = 0.9.
Ans: (a) = 0.0850; (b) = 0.3410
16. Repeat Question 15 but assume that 100 spots are treated and the critical region is defined to be x>82,
where x is the number of spots removed.
17. A new curing process developed for a certain type of cement results in a mean compressive strength
of 5000 kilograms per square centimeter with a standard deviation of 120 kilograms. To test the
hypothesis that = 5000 against the alternative that < 5000, a random sample of 50 pieces of cement is
tested. The critical region is defined to be

< 4970. (a) Find the probability of committing a type I

error when H0 is true. (b) Evaluate for the alternatives = 4970 and = 4960.
Ans: (a) = 0.0384; (b) = 0.5; = 0.2776
Single sample mean Hypothesis Testing:
18. Past experience indicates that the time required for high school seniors to complete a standardized test
is a normal random variable with a mean of 35 minutes and standard deviation of 4.3 minutes. If a
random sample of 20 high school seniors took an average of 33.1 minutes to complete this test, at the 0.05
level of significance, test the hypothesis that = 35 minutes against the alternative that < 35 minutes.
Ans: z = 1.98; P-value = 0.0239; reject H0
19. It is claimed that automobiles are driven on average more than 20,000 kilometers per year. To test this
claim, 100 randomly selected automobile owners are asked to keep a record of the kilometers they travel.
Would you agree with this claim if the random sample showed an average of 23,500 kilometers and a
standard deviation of 3900 kilometers? Use a P-value in your conclusion.
Ans: z = 8.97; yes, > 20, 000 kilometers; P-value < 0.001
M.I.Shamsi

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25.11.2016

Homework Activity # 4

Quantitative Tools for Managers

Fall 2016

20. A random sample of 64 bags of white cheddar popcorn weighed, on average, 5.23 ounces with a
standard deviation of 0.24 ounce. Test the hypothesis that = 5.5 ounces against the alternative
hypothesis, < 5.5 ounces, at the 0.05 level of significance.

M.I.Shamsi

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25.11.2016

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