Instructions for the next four problems:

1. State the null and the alternative hypotheses.
2. What statistical test would you use?
3. Perform an appropriate statistical test on data provided.
4. What managerial decision would you recommend?
5. List all your formulas and clearly show your work.

2. (8 Points) A real -estate agent claims that the average value of homes in a certain neighborhoods is greater than $560,000. A random sample of 40 homes has the mean value of $571,000 and the standard deviation of $37,500.

Using the confidence interval method, do these data support the agent’s claim at the 12% significant level?

3. (11 Points) The National Safety Council reported that less that 53 percent of American highway drivers are men. A random sample of 400 cars traveling on various highways last week revealed that 224 were driven by men.

1. Using the confidence interval method, do these data provide sufficient evidence at the 0.08 level of significance to indicate that the National Safety Council report’s is correct?
2. Calculate and interpret your p-value

4. (19 Points) The Phoenix Chamber of Commerce is interested in determining whether the mean weekly salary of firefighters was larger than that of police officers. To investigate, the following information on the amounts earned last week by a random sample of firefighters and police officers is given:

Fire Fighter ($) 1,050 800 1,150 900

Police Officers ($) 800 900 1,000 850 1,050

Can we conclude from these data that the mean weekly salary of firefighters is higher than the average weekly salary of the police officers? Assume these two populations have equal variances. Let α = 0.10.

5. (10 Points) The Arizona Fantastic Perfume Company recently developed a new fragrance it plans to market under the name "Magic." The Marketing Department at Fantastic is interested in determining whether there is a difference in the proportions of younger and older women who would purchase Magic if it were marketed in major department stores. A random sample of 250 young women revealed 50 liked the Magic well enough to purchase it. From randomly selected 150 older women, 24 expressed enough interest to purchase Fantastic.

Can we conclude that there is a significant different in the proportion of young than older women who might purchase Magic? Let α = 0.05

Price: $14.57

Solution: The downloadable solution consists of 6 pages, 857 words.
Deliverable: Word Document