Problem based on national average


Problem 1: At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, "You can average $80 a day in tips." Assume the population of daily tips is normally distributed with a standard deviation of $9.95. Over the first 35 days she was employed at the restaurant, the mean daily amount of her tips was $84.85. At the .01 significance level, can Ms. Brigden conclude that her daily tips average more than $80?

Problem 2: The mean income per person in the United States is $50,000, and the distribution of incomes follows a normal distribution. A random sample of 10 residents of Wilm¬ington, Delaware, had a mean of $60,000 with a standard deviation of $10,000. At the .05 level of significance, is that enough evidence to conclude that residents of Wilmington, Delaware, have more income than the national average?

Problem 3: Refer to the Lincolnville School District bus data.

A) Select the variable for the number of miles traveled last month. Conduct a hypothesis test to determine whether the mean miles traveled last month equals 10,000. Use the .01 significance level. Find the p-value and explain what it means.

B) A study of school bus fleets reports that the average per bus maintenance cost is $4,000 per year. Using the maintenance cost variable, conduct a hypothesis test to determine whether the mean maintenance cost for Lincolnville's bus fleet is more than $4,000 at the .05 significance level. Determine the p-value and report the results.

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