A technician compares repair costs for two types of microwave ovens (type I and type II). He believes that the repair cost for type I ovens is greater than the repair cost for type II ovens. A sample of 6060 type I ovens has a
Compute the value of the test statistic. Round your answer to two decimal places.
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- The Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. Although it requires a successful completion of three levels of grueling exams, it also entails promising careers with lucrative salaries. A student of finance is curious about the average salary of a CFA charterholder. He takes a random sample of 36 recent charterholders and computes a mean salary of $129,000 with a standard deviation of $22,000. Use this sample information to determine the 99% confidence interval for the average salary of a CFA charterholder. (You may find it useful to reference the t table. Round final answers to the nearest whole number.) Confidence intervalarrow_forwardA technician compares repair costs for two types of microwave ovens (type I and type II). He believes that the repair cost for type I ovens is greater than the repair cost for type II ovens. A sample of 34 type I ovens has a mean repair cost of $70.86, with a standard deviation of $12.35. A sample of 48 type II ovens has a mean repair cost of $67.84, with a standard deviation of $21.72. Conduct a hypothesis test of the technician's claim at the 0.10.1 level of significance. Let μ1 be the true mean repair cost for type I ovens and μ2 be the true mean repair cost for type II ovens. Step 2 of 4 : Compute the value of the test statistic. Round your answer to two decimal places.arrow_forwardThe Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. Although it requires a successful completion of three levels of grueling exams, it also entails promising careers with lucrative salaries. A student of finance is curious about the average salary of a CFA charterholder. He takes a random sample of 36 recent charterholders and computes a mean salary of $129,000 with a standard deviation of $22,000. Use this sample information to determine the 99% confidence interval for the average salary of a CFA charterholder. (You may find it useful to reference the t table. Round final answers to the nearest whole number.)arrow_forward
- Dr. Graham is interested in determining if middle-aged adults use text messaging more or less frequently than the general population. Dr. Graham collects information on text messaging from a random sample of 50 adults ages 25 to 44. Dr. Graham finds that these individuals send or receive an average of 68 text messages per day. Using the population mean (and standard deviation) of 41.5 texts per day (34 texts per day), determine whether adults in this age group use text messaging more than the general public.arrow_forwardAn industrial plant wants to determine which of two types of fuel, electric or gas, is more cost efficient (measured in cost per unit of energy). Independent random samples were taken of plants using electricity and plants using gas. These samples consisted of 14 plants using electricity, which had a mean cost per unit of $55.06 and standard deviation of $8.25, and 12 plants using gas, which had a mean of $57.80 and standard deviation of $7.81. Assume that the populations of costs per unit are normally distributed for each type of fuel, and assume that the variances of these populations are equal. Can we conclude, at the 0.10 level of significance, that μ₁, the mean cost per unit for plants using electricity, differs from μ₂, the mean cost per unit for plants using gas? Perform a two-tailed test. Then complete the parts below. Carry your intermediate computations to three or more decimal places and round your answers as specified in the table. (If necessary, consult a list of…arrow_forwardThe Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. It is an attractive alternative to getting an MBA for students wanting a career in investment. A student of finance is curious to know if a CFA designation is a more lucrative option than an MBA. He collects data on 38 recent CFAs with a mean salary of $138,000 and a standard deviation of $34,000. A sample of 80 MBAs results in a mean salary of $130,000 with a standard deviation of $46,000.a) Specify the hypotheses to test whether a CFA designation is more lucrative than an MBA.b) Calculate the value of the test statistic and the p-value. Do not assume that the population variances are equal.c) At the 5% significance level, is a CFA designation more lucrative than an MBA?arrow_forward
- The Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. It is an attractive alternative to getting an MBA for students wanting a career in investment. A student of finance is curious to know if a CFA designation is a more lucrative option than an MBA. He collects data on 36 recent CFAS with a mean salary of $145,000 and a standard deviation of $36,000. A sample of 47 MBAS results in a mean salary of $135,000 with a standard deviation of $24,000. Assume that H, is the population mean for individuals with a CFA designation and u, is the population mean of individuals with MBAS. (You may find it useful to reference the appropriate table: z table or t table) a. Set up the hypotheses to test if a CFA designation is more lucrative than an MBA at the 10% significance level. O Họ: 41- H2 = 0; HA: H1 - H2# 0 O Ho: 1-4220; HA H1 - 4200 b-1. Calculate the value of the test statistic. Do not assume that the population variances are…arrow_forwardA technician compares repair costs for two types of microwave ovens (type I and type II). He believes that the repair cost for type I ovens is greater than the repair cost for type Il ovens. A sample of 62 type l ovens has a mean repair cost of $86.71, with a standard deviation of $11.53. A sample of 61 type Il ovens has a mean repair cost of $79.77, with a standard deviation of $13.41. Conduct a hypothesis test of the technician's claim at the 0.05 level of significance. Let uj be the true mean repair cost for type I ovens and uz be the true mean repair cost for type Il ovens. Step 2 of 4: Compute the value of the test statistic. Round your answer to two decimal places. Answer O Tables E Keypad How to enter your answer Keyboard Shortcuts Previous Step Answers Submit Answer O 2020 Hawkes Learning MacBook Air 80 88 DI DD F1 F2 F4 F7 F8 F11 ! 23 $ & 1 2 3 4 + 7 8 9 Q W E R T Y U { [ A S D F H J K L C V B N M > ? otion command command option .. .-arrow_forwardManagers of an industrial plant want to determine which of two types of fuel, gas or electric, is more cost efficient (measured in cost per unit of energy). Independent random samples were taken of plants using electricity and plants using gas. These samples consisted of 10 plants using electricity, which had a mean cost per unit of $53.50 and standard deviation of $8.19 , and 11 plants using gas, which had a mean of $55.40 and standard deviation of $8.23 . Assume that the populations of costs per unit are normally distributed for each type of fuel, and assume that the variances of these populations are equal. Construct a 95% confidence interval for the difference −μ1μ2 between the mean cost per unit for plants using electricity, μ1 , and the mean cost per unit for plants using gas, μ2 . Then find the lower limit and upper limit of the 95% confidence interval. Carry your intermediate computations to at least three decimal places. Round your responses to at least…arrow_forward
- A technician compares repair costs for two types of microwave ovens (type I and type II). He believes that the repair cost for type I ovens is greater than the repair cost for type Il ovens. A sample of 60 type I ovens has a mean repair cost of $74.06, with a standard deviation of $16.10. A sample of 68 type Il ovens has a mean repair cost of $67.73, with a standard deviation of $14.70. Conduct a hypothesis test of the technician's claim at the 0.1 level of significance. Let u, be the true mean repair cost for type I ovens and u, be the true mean repair cost for type Il ovens. Step 1 of 4: State the null and alternative hypotheses for the test. Answer O Tables E Keypad Keyboard Shortcuts Submit Answer O 2020 Hawkes Learning E P Search for anything 812 AM 11/25/2020 hp brt se delete home end pg up 共 %24 4 2. 3 6 9 +] 8 + backspace num lock Q E R T Y 8. home G H K enter 4 pause V M t shift 2 end alt talt ctri insarrow_forwardCommunity college instructors' salaries in one state are very low, so low that educators in that state regularly complain about their compensation. The national mean is $57,636$57,636, but instructors from Mississippi claim that the mean in their state is significantly lower. They survey a simple random sample of 3737 colleges in the state and calculate a mean salary of $52,534$52,534 with a standard deviation of $15,791$15,791. Test the instructors' claim at the 0.050.05 level of significance. Step 3 of 3 : Draw a conclusion and interpret the decision.arrow_forwardAn industrial plant wants to determine which of two types of fuel, electric or gas, is more cost efficient (measured in cost per unit of energy). Independent random samples were taken of plants using electricity and plants using gas. These samples consisted of 9 plants using electricity, which had a mean cost per unit of $51.9 and standard deviation of $7.98 , and 14 plants using gas, which had a mean of $55.5 and standard deviation of $8.73 . Assume that the populations of costs per unit are normally distributed for each type of fuel, and assume that the variances of these populations are equal. Can we conclude, at the 0.05 level of significance, that the mean cost per unit for plants using electricity, μ1 , differs from the mean cost per unit for plants using gas, μ2 ? Perform a two-tailed test. Then fill in the table below. Carry your intermediate computations to at least three decimal places and round your answers as specified in the table. (If…arrow_forward
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