Hypothesis Testing

Clearly Show All Your Individual Work.

Instructions for Problems 3 and 4

1. State the null and alternative hypotheses.
2. What statistical test would you use?
3. Perform an appropriate statistical test on data provided.
4. What managerial decision(s) would you recommend?
   1. (6 points) A survey is being planned to determine the average amount of time chief executive officers of big corporations play golf. A pilot study with a small sample size indicated the mean time per week is 11 hours, with a standard deviation of 1.25 hours. It is desired to estimate the mean playing time within one-quarter hour with a 98 percent degree of confidence.
      1. How many chief executive officers should be contacted in the survey to estimate the average weekly playing time?
      2. If the confidence level were decreased to 92%, what would be the minimum sample size?
   2. (6 points) A past survey conducted by the Arizona Hospitality Association (AHA) revealed that 42 percent of tourists visiting the Grand Canyon during a summer weekend spent more than $400.00. The president of AHA would like to update that percentage within 1.5% margin of error.
      1. Using a 94% degree of confidence, what is the required sample size?
      2. What would be the required sample size for P = 0.42, and acceptable sampling error of 3% (assume the same confidence level)?
   3. (11 points) Express Appliance Repair (EAR) has nine repairpersons for the Phoenix metropolitan area. The operation manager of EAR believed that the number of repairpersons used each hour is binomially distributed with p=0.35, where p is the probability that a repairperson is sent out to provide service on any given hour. Two hundred hours of operation revealed the following results:

      Number of Repairpersons Sent Out for Service	Hours with the Number of Repairpersons Sent Out for Service
      0	6
      1	23
      2	38
      3	60
      4	36
      5	25
      6	9
      Over 6	3
      Total	200

      1. Is there any statistically significant evidence that the number of repairpersons used each hour is binomially distributed with p=0.35 (manual solution)? Assume the level of significance is 0.10. You can use Excel to find the probabilities for your distribution.
      2. What is your best estimate for the p- value from your table?
      3. Using Excel, what is your p- value ?
   4. (17 points) An immigration attorney is interested in investigating which industries to target for obtaining new clients who might have problems with current changes to the immigration laws. One hundred employees were randomly selected from four industries, and their latest visa status was verified. The data is summarized in the following table.

      	Industry
      Visa Status	Restaurants	Car Rentals	Constructions	Retailers
      Illegal Alien	10	4	15	6
      Legal Resident	9	8	5	13
      U.S. Citizen	5	7	6	2

      1. Is there any evidence of association between visa status and the type of industry at 10% significance level (manual solution)?
      2. Use SPSS to verify your answer for part (a). Interpret your computer printout. You should submit your own SPSS printout.

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Solution: The downloadable solution consists of 7 pages, 722 words and 1 charts.
Deliverable: Word Document