Question 1: The standard deviation of the amount of fat in whole milk is claimed to be no greater than 0.50 by the Dairy Association. You do not believe this. You find that a random sample of 31 milk containers has a standard deviation of 0.53. Using "alpha" = 0.05, is there enough evidence to reject the Association's claim? Would your conclusion change if "alpha" = 0.01? Assume the population is normally distributed.
Question 2: A national faculty group conducts salary surveys each year. For 2008, 35 University Professor's had an average salary of $88,200 and 30 Community College Instructor's had an average salary of $73,200. The population standard deviations are known to be $25,800 and $25,600, respectively. At "alpha" = 0.01, can we conclude that university salaries are higher than at the CC's?