Two car types underwent fuel efficiency tests. The table below summarizes the descriptive statistics generated from two samples of independent cars. Assume that both samples are from normal distributions with equal population variance: ? 1 ~?(? 1 , ? 2 ) and ? 2 ~?(? 2 , ? 2 ).

a) Is there sufficient evidence to claim that the first type of car runs on average below 25 miles per gallon (? 0 : ? 1 = 25 versus ? 1 : ? 1 < 25)? Conduct the test using p-value with

? = 0.1.

b) Find if ? for the test in part (a) is greater than or less than 0.1 when the true ? 1 = 20.

c) Can we claim that the two types of cars have the same fuel efficiency (? 0 : ? 1 = ?2 versus ? 1 : ? 1 ≠ ? 2 )? Conduct the test using p-value with ? = 0.05.

d) Can we claim that the first type is less fuel efficient than the second (? 0 : ? 1 = ? 2 versus ? 1 : ? 1 < ? 2 )? Conduct the test using critical region with ? = 0.05.

Two car types underwent fuel efficiency tests. The table below summarizes the descriptive statistics generated from two samples of independent cars. Assume that both samples are from normal distributions with equal population variance: ? 1 ~?(? 1 , ? 2 ) and ? 2 ~?(? 2 , ? 2 ).

a) Is there sufficient evidence to claim that the first type of car runs on average below 25 miles per gallon (? 0 : ? 1 = 25 versus ? 1 : ? 1 < 25)? Conduct the test using p-value with

? = 0.1.

b) Find if ? for the test in part (a) is greater than or less than 0.1 when the true ? 1 = 20.

c) Can we claim that the two types of cars have the same fuel efficiency (? 0 : ? 1 = ?2 versus ? 1 : ? 1 ≠ ? 2 )? Conduct the test using p-value with ? = 0.05.

d) Can we claim that the first type is less fuel efficient than the second (? 0 : ? 1 = ? 2 versus ? 1 : ? 1 < ? 2 )? Conduct the test using critical region with ? = 0.05.

In an experiment to determine the effect of ambient temperature on the emissions of oxides of nitrogen of diesel trucks, ten trucks were run at temperatures of 40°F and 80°F. The emissions, in parts per billion, are presented in the following table.

Test the claim that there is a significant difference in mean emissions between the two temperatures. Use       α = 0.05

1. For the grouped frequency data set obtained in Question above, calculate and interpret where possible:
2. a)The mean,                                                                                                                                                            (4)

b)median                                                                                                                                                                   (4)

c)mode                                                                                                                                                                      (4)

d)The interquartile range..                                                                                                                                 (10)

e)The coefficient of variation.                                                                                                                           (7)

The Fed can directly protect a bank during a bank run by providing liquidity to the bank and, in general, the Fed will sell government bonds to the bank in order to provide liquidity to the bank.

Select one:

True

False

In general, an open market purchase by the FOMC decreases the money supply and an open market sale increases the money supply

Select one:

True

False

The Fed regulates the money supply primarily by varying the reserves of banks, largely through sales and purchases of government bonds.

Select one:

True

False

In the absence of government protection, bank runs are a potential problem for banks because banks only hold a fraction of deposits as reserves.

Select one:

True

False

Under a fractional reserve banking system, banks hold only a fraction of deposits as reserves and, in general, lend out a majority of their excess reserves.

Select one:

True

False

How to Run descriptives and a two-tailed, two sample assuming equal variance t-test.

Here's your data:

You are a manager of a division of a company that is responsible for the final assembly of two computer products, modems and keyboards. You manage two employees, Julio and Chenyu, who each work 8 hours per day. Currently you have assigned both Julio and Chenyu to spend the first 7 hours of the day assembling keyboards and the last hour assembling modems. Julio can assemble 2 modems per hour and 14 keyboards per hour. Chenyu is more highly skilled in both activities. She averages 3 modems per hour and 15 keyboards per hour.

1. Devise a way of reassigning the work activities between the two employees that keeps the number of modems being assembled the same as before but increases the number of keyboards.

The CVS Pharmacy located on US 17 in Murrells Inlet has been one of the busiest pharmaceutical retail stores in South Carolina for many years. To try and capture more business in the area, CVS top management opened another store about 6 miles west on SC 707. After a few months, CVS management decided to compare the business volume at the two stores. One way to measure business volume is to count the number of cars in the store parking lots on random days and times. The results of the survey from the last 3 months of the year are reported below. To explain, the first observation was on October 2 at 20:52 military time (8:52 p.m.). At that time there were four cars in the US 17 lot and nine cars in the SC 707 lot. At the 0.05 significance level, is it reasonable to conclude that, based on vehicle counts, the US 17 store has more business volume than the SC 707 store?

1. State the decision rule: H₀: μ _{US 17} − μ _{SC 707} = μ_d ≤ 0  H₁: μ_d > 0. (Round your answer to 3 decimal places.)

Reject Ho if t >

2. Compute the value of the test statistic. (Round your answer to 3 decimal places.)

value of test statistics: __________

3. What is your decision regarding H₀?

Reject H₀

Do not reject H₀

The CVS Pharmacy located on US 17 in Murrells Inlet has been one of the busiest pharmaceutical retail stores in South Carolina for many years. To try and capture more business in the area, CVS top management opened another store about 6 miles west on SC 707. After a few months, CVS management decided to compare the business volume at the two stores. One way to measure business volume is to count the number of cars in the store parking lots on random days and times. The results of the survey from the last 3 months of the year are reported below. To explain, the first observation was on October 2 at 20:52 military time (8:52 p.m.). At that time there were four cars in the US 17 lot and nine cars in the SC 707 lot. At the 0.05 significance level, is it reasonable to conclude that, based on vehicle counts, the US 17 store has more business volume than the SC 707 store?

1. State the decision rule: H₀: μ _{US 17} − μ _{SC 707} = μ_d ≤ 0  H₁: μ_d > 0. (Round your answer to 3 decimal places.) Reject H0 if t >:

2. Compute the value of the test statistic. (Round your answer to 3 decimal places.)

3. What is your decision regarding H₀?

• Reject H₀

• Do not reject H₀