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Modern Business Statistics Study Set 1
Quiz 11: Inferences About Population Variances
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Question 41
Essay
A company has claimed that the standard deviation of the monthly incomes of its employees is less than or equal to $120. To test its claim, a random sample of 15 employees of the company was taken, and it was determined that the standard deviation of their incomes was $135. At a 5% level of significance, test the company's claim.
Question 42
Essay
A lumber company has claimed that the standard deviation for the lengths of its six-foot boards is 0.5 inch or less. To test its claim, a random sample of 17 six-foot boards is selected, and it is determined that the standard deviation of the sample is .43. Do the results of the sample support the company's claim? Use α = .1.
Question 43
Essay
A sample of 30 items provided a sample mean of 28 and a sample standard deviation of 6. Test the following hypotheses using α = .05. What is your conclusion? H
0
: σ
2
≤ 25 H
a
: σ
2
> 25
Question 44
Multiple Choice
There is a .90 probability of obtaining a ?
2
value such that _____.
Question 45
Essay
A coach is deciding on whether to buy stopwatches from company A or company B. A test was set up to see how many seconds each stopwatch was off in a precise 10-minute test period. For samples of watches from companies A and B, the following information on stopwatch errors was found.
Company A
Company B
Sample size
5
8
Sample mean (seconds)
.
18
.
15
Sample variance
.
3
1.1
\begin{array}{lcc} & \text { Company A } & \text { Company B } \\\text { Sample size } & 5 & 8 \\\text { Sample mean (seconds) } & .18 & .15 \\\text { Sample variance } & .3 & 1.1\end{array}
Sample size
Sample mean (seconds)
Sample variance
Company A
5
.18
.3
Company B
8
.15
1.1
Test the hypothesis of equal variances using a .05 level of significance. Be sure to state the null and alternative hypotheses being tested and the final conclusions of the test.
Question 46
Multiple Choice
In practice, the most frequently encountered hypothesis test about a population variance is a _____.
Question 47
Essay
A sample of 61 items provided a sample mean of 932, a sample mode of 900, and a sample standard deviation of 11. Test the following hypotheses using α = .05. What is your conclusion? H
0
: α
2
≤ 80 H
a
: α
2
> 80
Question 48
Essay
The average grade of a sample of 25 students on their second statistics examination was 85 with a standard deviation of 9. Is the variance of the population significantly more than 80? Use a .05 level of significance.