Q1. The city's Transit Commission wants to determine if there is a need for a change in the frequency of service over certain bus routes. It is determined that the average number of miles traveled by bus over the routes in question by all residents in a given area is about 6.8 per day. If the average number of miles traveled per person differs from 6.8 miles per day then changes in service may be necessary. Use a level of significance of alpha=.05.
A random sample of 145 bus riders is taken and it is found that the sample mean is 5.9 miles per resident per day with a standard deviation is 3.7 miles. Is a change in service necessary?
Q2. A local social service agency is asked to determine areas in the greatest need of social support. The neighbourhoods that are identified as being in need of assistance will qualify for the city's new employment assistance. The determination will be based on whether a neighbourhood's income is below the monthly mean household income of $1,365. The preferred level of significance for this analysis is alpha=.01
The first area examined is the Southside community. A random sample of 98 households produces a mean of $1,240 with a standard deviation of $580.
a. Does the Southside qualify for the employment assistance program?
b. Provide the city council with a recommended course of action based on this result.