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1. The fleet manager of a large logistics company wants to know the average MPG of its entire fleet of thousands of vehicles. You talk

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1. The fleet manager of a large logistics company wants to know the average MPG of its entire fleet of thousands of vehicles. You talk the fleet manager into estimating the average MPG so you must now construct a 95% confidence interval for the mean MPG of the entire fleet. A sample of 36 vehicles revealed a sample mean MPG of 5.5 and the standard deviation is known to be .75. The fleet manager also wants a 99% confidence interval constructed for the same problem. 2. The probability of passing all four parts of the CPA exam the first time is 10%. A) What is the probability of selecting 10 individuals taking the CPA exam and exactly 2, pass all four parts of the CPA exam the first time? B) What is the probability that no less than 9 pass all four parts of the CPA exam the first time? C) What is the probability at least two, pass all four parts of the CPA exam the first time? 3. A waiter brags that he can average $750 or more a day on tips. An audit of 49 days of tips revealed an average of $715 a day with a standard deviation of $25. Test the waiters claim at the .05 level of significance. Be sure to show the Null and Alternate hypotheses and assume the critical value of z is 1.96. 4. The average daily sales receipts for a mid-sized diner are normally distributed with a mean $12,500 and a standard deviation of $1,000. A) What is the probability of randomly selecting a day of sales and finding receipts were more than $13,000? B) What is the probability that a randomly selected day of sales revealed receipts between $12,000 and $13,000? C) What proportion days would you expect receipts to below $11,000? D) What percentage of days see receipts below $11,000 or above $13,250? E) What is the probability of selecting a day's receipts that are more than $11,750? H

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