13. A manager wants to know whether customers in Taiwan, on average, would spend more than...

13. A manager wants to know whether customers in Taiwan, on average, would spend more than $2,000 per month on the service that is similar to what her company provides. The following information regarding the consumer behavior of 49 customers was provided by the marketing research team: sample mean = $2,400 and sample standard deviation = $1,800. Using the sample information provided and 0.05 significance level, determine the critical value and calculate the value of the test statistic.

A. Critical value = –1.96 & +1.96, and Test statistic = –1.56

B. Critical value = –1.645, and Test statistic = –1.56

C. Critical value = +1.645, and Test statistic = +1.56

D. Critical value = +1.96, and Test statistic = +1.56

14. Which of the following is NOT a characteristic of a normal variable?

A. It can be converted into the standard normal variable.

B. The values are from –∞ to +∞.

C. The center line is always at 0.

D. The probability of each individual value is virtually 0.

15. A tire manufacturer claims that his tires have a mean life of 60,000 miles when used under normal diving conditions. A firm that requires a larger number of these tires wants to test the claim. If the claim is correct, the firm will purchase the manufacturer’s tires; otherwise, the firm will seek another supplier. Now a random sample of 100 tires is taken and the mean and standard deviation of the 100 tires are found. Using these sample results, a 95% confidence interval for the mean life of the tire is estimated as from 56,789 to 63,211 miles. The manufacturer’s claim is tested at the 5% significance level. Based on the given information, what should the firm do?

A. The firm will seek another supplier.

B. Cannot be determined because of insufficient information.

C. The firm will purchase the manufacturer’s tires.

D. The firm will purchase half from the manufacturer and the other half from another supplier.

16. Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills promptly. However, this is not always possible. An analysis of the amount of interest paid monthly by a bank’s Visa cardholders reveals that the amount is normally distributed with a mean of $1,735 and a standard deviation of $285. What interest payment is exceeded by only 15% of the bank’s Visa cardholders?

A. $1,438.60

B. $1,585.375

C. $1,884.625

D. $2,031.40

Solutions

Expert Solution

orchestra answered 1 year ago

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