1. A meat processing company markets a package of 8 small sausage sandwiches.

The
product is nationally distributed and the company is interested in knowing the average
retail price charged for their item in stores around the country. The company cannot
justify a national census to generate this information. Based on the company’s
information system’s list of all retailers that carry their products, a researcher contacts 36
of these retailers and obtains the selling prices for the product at an average of 2.56. Use
the following price data and population standard deviation of .113 to determine a point
estimate for the national retail price of the product. Construct a 90% confidence Interval
to estimate the price.

2. According to the center for organizational research and development on a survey of

relocation administrators, 63% if all workers who reject relocation offers did due to family
considerations. Suppose this figure was obtained using a sample of the files of 690
workers who rejected relocation offers. Use this to construct a 90% confidence interval to
estimate the population proportion of workers who reject relocation offers due to family

3. Use the data provided below to:

x-bar = 1515, n= 120, σ =100, ∝=.10

a. test the following Hypothesis (5 points)

HO: 𝜇 =1500, HA: 𝜇 >1500
b. Use the p-value to obtain the result (5 points)

4. Suppose a random sample of 14 individuals ranging from the ages of 25-39 produce the
household income shown below. Use the data to determine a point estimate for the
population variance of incomes. Construct a 95% confidence interval. Assume
household income is normally distributed. (10pts)
37,600 44,900
33,800 36,700
42,400 32,700
28,100 41,800
46,500 38,300
40,210 32,700
35,550 36,600
5. Test the hypothesis:
Use the data provided below to:
x = 58, n= 100, ∝=.01
a. test the following Hypothesis (5 points)
HO: 𝑝 = .65 , HA: p<.65
b. Is there enough data to reject HO ? Write the complete statement proving or
disproving the Null hypothesis. (5 points)
6. A survey of the morning beverage market shows that the primary breakfast beverage for
17% of Filipinos is Milk. A Milk producer in Nueva Ecija believes that the figure is higher for
her province. To test the theory, she contacts random samples of 550 residents and asks
them what their primary beverage is. Suppose 115 replied that Milk was their breakfast
drink of choice. Using a level of significance of .05, test the idea that the figure for Milk is
higher in Nueva Ecija.

7. A manufacturer for aerial drones believes that exactly 8% of its products contain at least
one flaw. Suppose that the company wants to test this belief and randomly test 200
products from their line. Of the sampled items 33 contain a flaw. Use a level of
significance of .10 to test this theory, what critical values would be needed to reject the
claim of the manufacturer?

8. A local gym builds exercise equipment. For a Lat pulldown machine to be properly
balanced a 25 lbs plate is installed. The machine that produces this is set to yield an
average of 25lbs plates. The distribution is normal. However the supervisor is worried that it
does not produce 25lbs. He randomly selects 20 plates. Assume a level of significance of
.05. Does he have reason to be worried?

22.6 28.1
27.0 23.1
26.2 28.6
25.8 27.4
22.2 26.9
26.6 24.2
25.3 23.5
30.4 24.9
23.2 26.1
24.5 23.6
9. The Environmental Protection Agency releases figures on urban air soot in selected cities
in the United States. For the city of St. Louis, the EPA claims that the average number of
micrograms of suspended particles per cubic meter of air is 82. Suppose St. Louis officials
have been working with businesses, commuters, and industries to reduce this figure.
These city officials hire an environmental company to take random measures of air soot
over a period of several weeks. The resulting data follow. Assume that the population
standard deviation is 9.184. Use these data to determine whether the urban air soot in St.
Louis is significantly lower than it was when the EPA conducted its measurements. Let
alpha be = .01. If the null hypothesis is rejected, discuss the substantive hypothesis. At
what critical value would we reject the null hypothesis?

81.6, 66.6, 70.9, 82.5, 58.3, 71.6, 72.4

96.6, 78.6, 76.1, 80.0, 73.2, 85.5, 73.2
68.6, 74.0, 68.7, 83.0, 86.9, 94.9, 75.6
77.3, 86.6, 71.7, 88.5, 87.0, 72.5, 83.0
85.8, 74.9, 61.7, 92.2
10. Suppose a study reports that the average price for a gallon of self-serve regular
unleaded gasoline is $3.16. You believe that the figure is higher in your area of the
country. You decide to test this claim for your part of the United States by randomly
calling gasoline stations. Your random survey of 25 stations produces the following prices.

$3.27 $3.29 $3.16 $3.20 $3.37

3.20 3.23 3.19 3.20 3.24
3.16 3.07 3.27 3.09 3.35
3.15 3.23 3.14 3.05 3.35
3.21 3.14 3.14 3.07 3.10
Assume gasoline prices for a region are normally distributed. Do the data you obtained
provide enough evidence to reject the claim? Use a 1% level of significance.