1. Last year, 49% of business owners gave a holiday gift to their employees.

A survey of business
owners conducted this year indicates that 35% plan to provide a holiday gift to their employees.
Suppose the survey results are based on a sample of 80 business owners. Do the hypothesis test
that can be used to determine if the proportion of business owners providing holiday gifts has
decreased from last year. Use P-value approach.
2. Suppose in 2018, RAND Corporation researchers found that 73% of all individuals ages 66 to 69 are
adequately prepared financially for retirement. Many financial planners have expressed concern that
a smaller percentage of those in this age group who did not complete high school are adequately
prepared financially for retirement. Develop appropriate hypotheses to determine that the proportion
of those who are adequately prepared financially for retirement is smaller for people in the 66–69
age group who did not complete high school than it is for the population of the 66–69-year-old. In a
random sample of 300 people from the 66–69 age group who did not complete high school, 159 were
not prepared financially for retirement. At alpha=0.01, what is your conclusion? Use critical value
approach
3. According to a research center, 9% of all merchandise sold in a particular country gets returned. A
department store in a certain city sampled 80 items sold in January and found that 16 of the items
were returned. Is the proportion of returns at the store in the given city significantly different from
the returns for the country as a whole? At alpha=0.01, what is your conclusion? Use P-value value
approach
4. Eagle Outfitters is a chain of stores specializing in outdoor apparel and camping gear. They are
considering a promotion that involves mailing discount coupons to all their credit card customers.
This promotion will be considered a success if more than 9% of those receiving the coupons use
them. Before going national with the promotion, coupons were sent to a sample of 100 credit card
customers. Develop hypotheses that can be used to test whether the population proportion of those
who will use the coupons is sufficient to go national. At alpha=0.05, what is your conclusion? Use P-
value value approach
5. The increasing annual cost (including tuition, room, board, books, and fees) to attend college has
been widely discussed (Time.com). The following random samples show the annual cost of attending
private and public colleges. Data are in thousands of dollars.

Private Colleges

51.8 44.2 44.0 34.3 44.0

31.6 46.8 37.8 51.5 43.0

Public Colleges

20.3 22.0 28.2 15.6 24.1 28.5

22.8 25.8 18.5 25.6 14.4 21.8

Can you determine whether average annual cost in private colleges is more than the public colleges?
Use alpha=0.05 and critical value approach.

6. The success of an airline depends heavily on its ability to provide a pleasant customer experience.
One dimension of customer service on which airlines compete is on-time arrival. The tables below
contain a sample of data from delayed flights showing the number of minutes each delayed flight
was late for two different airlines, Company A and Company B.
 Company A

34 59 43 30 3 Company B

32 42 85 30 48 44 65 41 34 66

110 50 10 26 70 106 46 28 39 86

52 83 78 27 70 75 45 34 49 63

27 90 38 52 76 43 36 33 65 64

Formulate the hypotheses that can be used to test for a difference between the population mean
minutes late for delayed flights by these two airlines. Using alpha 0.05 level of significance, what is
your conclusion? Use P-value approach
7. The College Board provided comparisons of Scholastic Aptitude Test (SAT) scores based on the
highest level of education attained by the test taker's parents. A research hypothesis was that
students whose parents had attained a higher level of education would on average score higher on
the SAT. The overall mean SAT math score was 514. SAT math scores for independent samples of
students follow. The first sample shows the SAT math test scores for students whose parents are
college graduates with a bachelor's degree. The second sample shows the SAT math test scores for
students whose parents are high school graduates but do not have a college degree.

High School
College Grads
Grads

485 442 492 487

534 580 478 533

650 479 425 526

554 486 485 410

550 528 390 515

572 524 535 578

497 448

592 469

Formulate the hypotheses that can be used to determine whether the sample data support the
hypothesis that students show a higher population mean math score on the SAT if their parents
attained a higher level of education. At alpha = 0.05, what is your conclusion? Use critical value
8. A consumer product testing organization uses a survey of readers to obtain customer satisfaction
ratings for the nation's largest supermarkets. Each survey respondent is asked to rate a specified
supermarket based on a variety of factors such as: quality of products, selection, value, checkout
efficiency, service, and store layout. An overall satisfaction score summarizes the rating for each
respondent with 100 meaning the respondent is completely satisfied in terms of all factors. Suppose
sample data representative of independent samples of two supermarkets' customers are shown
below.

Supermarket 1 Supermarket 2

n1 = 260 n2 = 300

x1 = 88 x2 = 87

Assume that experience with the satisfaction rating scale indicates that a population standard
deviation of 13 is a reasonable assumption for both retailers. Conduct the hypothesis test whether
there is a difference between the population mean customer satisfaction scores for the two retailers.
At alpha = 0.05, what is your conclusion? Use P-value approach.