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In Class Problems

1. A healthcare actuary investigated cancer patient costs averaging Rs. 10,240 per month. A December sample of 15 cases averaged Rs. 10,080 with a standard deviation of Rs. 1,800. Is there evidence of a significant change? 2. A farmer tried a new planting technique hoping to increase pea plant pod yield, which normally averages 145 pods. His new technique produced plants averaging 147 pods. Is this a statistically significant increase? 3. A college wants to know if football players' academic scores improved after an initiative. Football players averaged 79.5/100 with a standard deviation of 1.35, compared to the average student athlete score of 77.5/100 previously. Is the

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46 views1 page

In Class Problems

1. A healthcare actuary investigated cancer patient costs averaging Rs. 10,240 per month. A December sample of 15 cases averaged Rs. 10,080 with a standard deviation of Rs. 1,800. Is there evidence of a significant change? 2. A farmer tried a new planting technique hoping to increase pea plant pod yield, which normally averages 145 pods. His new technique produced plants averaging 147 pods. Is this a statistically significant increase? 3. A college wants to know if football players' academic scores improved after an initiative. Football players averaged 79.5/100 with a standard deviation of 1.35, compared to the average student athlete score of 77.5/100 previously. Is the

Uploaded by

shreepati jha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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In-class Problems

1. A healthcare actuary has been investigating the cost of maintaining cancer patients within a plan. The average
costs accrued to cancer patients has been Rs.10,240 per month. A sample of 15 cases for December exhibited
an average cost of Rs. 10,080, with a standard deviation of Rs. 1,800. Is there any evidence of a significant
change?

2. A farmer is trying out a planting technique that he hopes will increase the yield on his pea plants. The average
number of pods on one of his pea plants is 145 pods with a standard deviation of 100 pods. This year, after
trying his new planting technique, he takes a random sample of his plants and finds the average number of
pods to be 147. He wonders whether or not this is a statistically significant increase. Is it?

3. A college sports director is asked if football players are doing as well academically as the other student
athletes. We know from a previous study that the average scores for student athletes is 77.5/100. After an
initiative to help improve the academic scores of student athletes, the sports director randomly samples 20
football players and finds that the average score of the sample is 79.5/100 with a sample standard deviation of
1.35 marks. Is there a significant improvement? Use a 0.05 significance level.

4. Duracell manufactures batteries that the CEO claims will last an average of 300 hours under normal use. A
researcher randomly selected 20 batteries from the production line and tested these batteries. The tested
batteries had a mean life span of 270 hours with a standard deviation of 50 hours. Do we have enough
evidence to suggest that the claim of an average lifetime of 300 hours is false?

5. A study in 2018 reported that teenagers spent 4.5 hours per week, on average, on the phone. A researcher
thinks that, currently, the mean is higher. Fifteen randomly chosen teenagers were asked how many hours
per week they spend on the phone. The sample mean was 4.75 hours with a sample standard deviation of 2.0.
State and test the hypotheses as the researcher should.

6. In the article “How not to catch a spy: Use a lie detector,” Fienberg reports that even if the test were designed
to catch eight of every 10 spies, it would produce false results for large numbers of people. “For every 10,000
employees screened,” Fienberg said, “eight real spies would be singled out, but 1,598 innocent people would
be singled out with them, with no hint of who’s a spy and who isn’t.” Based on this information, set up a two-
way table, classifying 10,000 employees as actually being spies or not, and being singled out as a spy by the lie
detector or not. Report the probability of a Type I Error (false positive) and of a Type II Error (false negative). If
someone is identified by the lie detector as being a spy, what is the probability that he or she is actually a spy?

7. A statistics instructor believes that fewer than 20% of his students attended the opening midnight showing of
a recently launched movie. She surveys 84 of her students and finds that 11 of them attended the midnight
showing. Does the survey affirm her belief?

8. A university has found over the years that out of all the students who are offered admission, the proportion
who accept is .70. After a new director of admissions is hired, the university wants to check if the proportion
of students accepting has changed significantly. Suppose they offer admission to 1200 students and 888
accept. Is this evidence of a change from the status quo?

9. In a group of 371 students, 45 chose the number seven when picking a number between one and twenty “at
random”. Does this provide convincing statistical evidence of bias in favour of the number seven, in that the
proportion of students picking seven is significantly higher than 1/20 = .05?

10. A doctor claims that less than 30 percent of all persons exposed to a certain amount of radiation will feel any
ill effects. If, in a random sample, only 1 of 19 persons exposed to such radiation felt any ill effects, test the
null hypothesis θ = 0.30 against the alternative hypothesis θ < 0.30 at the α = .05 significance level.

11. If 26 tyres out of 200 of brand A and 23 tyres out of 200 for brand B failed to last 30,000 km – can we say
brand A is better than brand B?

12. In random samples of 250 persons with low incomes, 200 persons with average incomes, and 150 persons
with high incomes, there were, respectively, 155, 118 and 87 who favour a certain piece of legislation. Is the
percentage of those favouring the legislation same across income classes?

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