
c. At α .05, can the null hypothesis be rejected? What is your conclusion?
d. Repeat the preceding hypothesis test using the critical value approach.
30.
AOLTime Warner Inc.’s CNN has been the longtime ratings leader of cable television news.
Nielsen Media Research indicated that the mean
CNN viewing audience was 600,000
viewers per day during 2002 (The Wall Street Journal, March 10, 2003). Assume that for
a sample of 40 days during the first half of 2003, the daily audience was 612,000 viewers
with a sample standard deviation of 65,000 viewers.
a. What are the hypotheses if
CNN management would like information on any change
in the
CNN viewing audience?
b. What is the p-value?
c. Select your own level of significance. What is your conclusion?
d. What recommendation would you make to
CNN management in this application?
31. The Coca-Cola Company reported that the mean per capita annual sales of its beverages in
the United States was 423 eight-ounce servings (Coca-Cola Company website, February 3,
2009). Suppose you are curious whether the consumption of Coca-Cola beverages is
higher in Atlanta, Georgia, the location of Coca-Cola’s corporate headquarters. A sample
of 36 individuals from the Atlanta area showed a sample mean annual consumption of
460.4 eight-ounce servings with a standard deviation of s 101.9 ounces. Using α .05,
do the sample results support the conclusion that mean annual consumption of Coca-Cola
beverage products is higher in Atlanta?
32. According to the National Automobile Dealers Association, the mean price for used cars
is $10,192. A manager of a Kansas City used car dealership reviewed a sample of 50 re-
cent used car sales at the dealership in an attempt to determine whether the population
mean price for used cars at this particular dealership differed from the national mean. The
prices for the sample of 50 cars are shown in the file named UsedCars.
a. Formulate the hypotheses that can be used to determine whether a difference exists in
the mean price for used cars at the dealership.
b. What is the p-value?
c. At α .05, what is your conclusion?
33. Annual per capita consumption of milk is 21.6 gallons (Statistical Abstract of the United
States: 2006). Being from the Midwest, you believe milk consumption is higher there and
wish to support your opinion. A sample of 16 individuals from the midwestern town of
Webster City showed a sample mean annual consumption of 24.1 gallons with a standard
deviation of s 4.8.
a. Develop a hypothesis test that can be used to determine whether the mean annual
consumption in Webster City is higher than the national mean.
b. What is a point estimate of the difference between mean annual consumption in
Webster City and the national mean?
c. At α .05, test for a significant difference. What is your conclusion?
34. Joan’s Nursery specializes in custom-designed landscaping for residential areas. The esti-
mated 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 the planting of a medium-sized tree.
Actual times from a 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
With a .05 level of significance, test to see whether the mean tree-planting time differs
from two hours.
a. State the null and alternative hypotheses.
b. Compute the sample mean.
c. Compute the sample standard deviation.
d. What is the p-value?
e. What is your conclusion?
372 Chapter 9 Hypothesis Tests
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