1. Suppose that a doctor claims that 17 year olds have an average body temperature that is higher than the commonly accepted average of human temperature of 98 degrees F. A simple random sample of 25 people, each of age of 17 is selected. An average of 17 year olds is found to be 98.9 degrees with an average of 0.6 degrees.
2. An insurance company is reviewing its current policy rates. When originally setting the rates they believe that the average claim amount was $1800. They are concerned that the true mean is actually higher than this because they could potentially lose a lot of money. They randomly selected 40 claims, and calculate a sample mean of $1950. Assuming that the standard deviation of claims is $500, and set α =0.05, test to see if the insurance company should be concerned.
3.Trying to encourage to stop driving to campus, the university claims that on average it takes people 30 minutes to find a parking space on campus with a sample mean of 20 minutes. Assuming that the time to find parking spot is normal, and the standard deviation is 6 minutes, perform a hypothesis test with α=0.10.
By: Patrick Anthony M. Alcantara
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