4.28 Testing for food safety. A food safety inspector is called upon to investigate a restaurant with a few customer reports of poor sanitation practices. The food safety inspector uses a hypothesis testing framework to evaluate whether regulations are not being met. If he decides the restaurant is in gross violation, its license to serve food will be revoked.
(a) Write the hypotheses in words.
(b) What is a Type 1 error in this context?
(c) What is a Type 2 error in this context?
(d) Which error is more problematic for the restaurant owner? Why?
(e) Which error is more problematic for the diners? Why?
(f) As a diner, would you prefer that the food safety inspector requires strong evidence or very
strong evidence of health concerns before revoking a restaurant’s license? Explain your reasoning.
4.30 Car insurance savings, Part I. A car insurance company advertises that customers switching to their insurance save, on average, $432 on their yearly premiums. A market researcher at a competing insurance discounter is interested in showing that this value is an overestimate
so he can provide evidence to government regulators that the company is falsely advertising their
prices. He randomly samples 82 customers who recently switched to this insurance and finds an
average savings of $395, with a standard deviation of $102.
(a) Are conditions for inference satisfied?
(b) Perform a hypothesis test and state your conclusion.
(c) Do you agree with the market researcher that the amount of savings advertised is an overestimate? Explain your reasoning.
(d) Calculate a 90% confidence interval for the average amount of savings of all customers who
switch their insurance.
(e) Do your results from the hypothesis test and the confidence interval agree? Explain.
4.32 Speed reading, Part I. A company offering online speed reading courses claims that students who take their courses show a 5 times (500%) increase in the number of words they can read in a minute without losing comprehension. A random sample of 100 students yielded an average increase of 415% with a standard deviation of 220%. Is there evidence that the company’s claim is false?
(a) Are conditions for inference satisfied?
(b) Perform a hypothesis test evaluating if the company’s claim is reasonable or if the true average improvement is less than 500%. Make sure to interpret your response in context of the hypothesis test and the data. Use α= 0:025.
(c) Calculate a 95% confidence interval for the average increase in the number of words students
can read in a minute without losing comprehension.
(d) Do your results from the hypothesis test and the confidence interval agree? Explain.
4.34 Ages of pennies, The histogram below shows the distribution of ages of pennies at a bank.
The mean age of the pennies is 10.44 years with a standard deviation of 9.2 years. Using the Central Limit Theorem, calculate the means and standard deviations of the distribution of the mean from random samples of size 5, 30, and 100. Comment on whether the sampling distributions shown agree with the values you compute.
4.36 Identify distributions, Part II. Four plots are presented below. The plot at the top is a distribution for a population. The mean is 60 and the standard deviation is 18. Also shown
below is a distribution of (1) a single random sample of 500 values from this population, (2) a
distribution of 500 sample means from random samples of each size 18, and (3) a distribution of
500 sample means from random samples of each size 81. Determine which plot (A, B, or C) is
which and explain your reasoning.
4.38 Stats final scores. Each year about 1500 students take the introductory statistics course at a large university. This year scores on the final exam are distributed with a median of 74 points,
a mean of 70 points, and a standard deviation of 10 points. There are no students who scored
above 100 (the maximum score attainable on the final) but a few students scored below 20 points.
(a) Is the distribution of scores on this final exam symmetric, right skewed, or left skewed?
(b) Would you expect most students to have scored above or below 70 points?
(c) Can we calculate the probability that a randomly chosen student scored above 75 using the
(d) What is the probability that the average score for a random sample of 40 students is above
(e) How would cutting the sample size in half affect the standard error of the mean?