Worksheet 9 (Chapter 6): Hypothesis Test
Name: ________KEY______________________________________ Section: _________________________
1. Joan’s Nursery specializes in custom-designed landscaping for residential areas. The estimated labor cost
associated with a particular landscaping proposal is based on the number of plantings of trees, shrubs, and so on
to be used for the project. For cost-estimating purposes, managers use two hours of labor time for planting of a
medium-sized tree. Actual times from a random sample of 10 plantings during the past month follow (times in
hours).
1.7 1.5 2.6 2.2 2.4 2.3 2.6 3.0 1.4 2.3
This data can be found in [Link] on BB.
With a 0.05 level of significance, Use the following steps to test to see whether the population mean tree-
planting time differs from two hours.
(A) What type of test are you performing?
a. Hypothesis Test for One Sample Mean
b. Hypothesis Test for One Sample Proportion
c. Hypothesis Test for One Sample Variance/Standard Deviation
(B) What are the null and alternative hypothesis for this test? Be sure to define your parameter.
(C) What assumptions/conditions are required to perform an appropriate test? (Hint: To check for population
normality create a histogram of your sample)
(D) What is your Rejection Region for this test? Draw a picture
Worksheet 9 (Chapter 6): Hypothesis Test
(E) What is your Test Statistic for this test? Show your work
(F) What decision do you make about your null hypothesis? Why?
(G) Write a conclusion statement about your findings of your test.
(H) USING DDXL – Insert the output from DDXL for this test
(I) Based on the p-value from your DDXL will you end up with your same conclusion in part (G), why or why not?
Worksheet 9 (Chapter 6): Hypothesis Test
Worksheet 9 (Chapter 6): Hypothesis Test
1. A study by Consumer Reports showed that 64% of supermarket shoppers believe supermarket brands to be as
good as national name brands. To investigate whether this result applies to its own store, the manager of the
Publix in Clemson, SC asked a random sample of 100 shoppers whether they believed that supermarket brand
ketchup was as good as the national brand ketchup, 52 believed the did believe the supermarket brand was as
good as the national brand.
(A) What is the parameter of interest for this test? (i.e., what does your parameter represent?)
(B) At the 10% significance level, is there sufficient evidence to suggest that the proportion of all shoppers that
believe that supermarket ketchup was as good as the national brand ketchup is different from 64%. Using
the p-value method show BY HAND ALL of the steps of the appropriate hypothesis test including stating
and checking conditions/assumptions.
Worksheet 9 (Chapter 6): Hypothesis Test
(C) USING DDXL – Create an excel spread sheet for your sample data (you do not have to turn this in). Use
DDXL to generate output for the appropriate hypothesis test. Give that output here. [Hint the output
should reflect your work above]
2. John Calipari, head basketball coach for the 2012 national champion University of Kentucky Wildcats, is the
highest paid coach in college basketball with an annual salary of $5.4 million (as of March 29, 2012). It is
thought that basketball coaches’ salaries a fairly varied with a standard deviation of 2 million dollars. The
sample in the EXCEL file Basketball_Salaries.xls shows the head basketball salary for a random sample of 10
schools playing NCAA Division I basketball. Salary data are in millions of dollars assume salaries are normally
distributed.
(A) What is the parameter of interest for this test? (i.e., what does your parameter represent?)
(B) At the 1% significance level, is there sufficient evidence to suggest that the variance of all NCAA basketball
coaches’ salaries is less than 4 million dollars? Using the Rejection Region method show BY HAND ALL of
the steps of the appropriate hypothesis test including stating and checking conditions/assumptions.
Worksheet 9 (Chapter 6): Hypothesis Test
(C) USING DDXL –Insert the output from DDXL for this test
(D) Based on the p-value from your DDXL will you end up with your same conclusion in part (G), why or why
not?
Worksheet 9 (Chapter 6): Hypothesis Test
3. Fill in the following table
Test for… Population Assumptions/ Equation for Test Statistic
Parameter Conditions
Symbol
Variance
Mean
Proportion
Worksheet 9 (Chapter 6): Hypothesis Test
4. The label on a 3-quart container of orange juice states that the orange juice contains an average of 1 gram of fat.
Answer the following questions for hypothesis test that could be used to test whether the average fat is greater
than 1 gram.
(A) Develop the appropriate null and alternative hypotheses. Define your parameter.
(B) In terms of your hypotheses what is a Type I error in this situation?
(C) What are the consequences of making this error?
(D) In terms of your hypotheses what is a Type II error in this situation?
(E) What are the consequences of making this error?