1. State the null and the alternative hypotheses in this scenario (4 pts):
A new sales force bonus plan is developed in an attempt to increase sales.
Null hypothesis: New bonus plan does not increase sales.
Alternative hypothesis:--New bonus plan increases sales.
2. For this question refer to Case Problem 1 (Quality Associates Inc.) on page 410 of your text (30 pts)
1) H0: μ = 12
Ha: μ ≠ 12
2) α = .01, but for two-tail test will = .005
3) Z = (x-bar – μ) / (σ/√n)
4) Z Critical value at .005 = 2.575
5) Z = (11.9587 – 12) / (.21/√30) = -1.077187
The observed value lies outside the rejection region, so we fail to reject H0.
6) P –value is between ...view middle of the document...
21 in 2 cases and just below .21 in 2 cases. The average standard...
Use this for questions 3 & 4
Jean lives about 10 miles from the college where she plans to attend a 10-week summer class. There are two main routes she can take to the school, one through the city and one through the countryside. The city route is shorter in miles, but has more stoplights. The country route is longer in miles, but has only a few stop signs and stoplights. Jean sets up a randomized experiment where each day she tosses a coin to decide which route to take that day. She records the minutes of travel time for 5 days of travel on each route.
Country Route: 17, 15, 17, 16, 18
City Route: 18, 13, 20, 10, 16
3. It is important to Jean to arrive on time for her classes, but she does not want to arrive too early because that would increase her parking fees.
Based on the data gathered, which route would you advise her to choose? (1pt)
a. The Country Route
b. The City Route
c. No difference in routes
a) The country route because the times are consistently between 15 and 18 minutes.
4. Which of the following best matches the reason for your answer to question 3? (2pts)
a. Because the Country Route times are consistently between 15 and 18 minutes.
b. Because she can get there in 10 minutes on a good day with the City Route.
c. Because the average time for the City Route is less than for the Country Route.
d. Because the times on the two routes are about the same.
e. None of the above. Please give your own reason: ____________________________