7 Steps for Tests of Significance 1. State the research question. 2. Identify the parameter. 3. State the hypotheses. 4. Choose the method. 5. Do the test. 6. Interpret the p-value and alpha. Must be stated in the context of the problem. 7. Draw a conclusion. Must be stated in the context of the problem.

1. (50 pts.) Suppose the label on a carton of orange juice includes a statement that the carton contains 64 ounces. Due to normal variations incurred in the production process; however, each day's production will average slightly above 64 ounces. The maker of the orange juice does not want the carton to contain significantly more than 64 ounces. An inspector in the quality department takes daily samples of 50 cartons. One such sample had a mean of 64.42 ounces and standard deviation 1.5 ounces. a. Should the inspector conclude that the cartons contain significantly more than 64 ounces at the 1% significance level? b. In the context of this problem and your conclusion, what type of error is possible? c. In the context of this problem, what would the error be? d. In the context of this problem, what would be a possible consequence of this error? 2. (25 pts.) A researcher takes a sample of boxes of raisins and finds the following results. 15.5 15.4 14.5 15.5 15.6 15.1 15.3 15.1 15.3 15.4 15.1 14.7 15.4 14.6 15.2 a. Find the median. b. State the 5 Number Summary. c. Find the interquartile range. d. Using the rule of thumb for outliers are there any outliers in this data set? e. Identify any outlier(s). 3. (50 pts.) The marketing director for a local pizza restaurant has asked you to provide advice on whether a particular commercial currently airing on local radio and television stations is reaching high school students. You take a random sample of 80 high school students and find that 40 are familiar with the commercial. a. The director will discontinue the commercial if less than 60% of high school students are familiar with the commercial. How would you advise the director if she only wants to have a 3% risk discontinuing an effective commercial? b. In the context of this problem and your conclusion, what type of error is possible? c. In the context of this problem, what would the error be? d. In the context of this problem, what would be a possible consequence of this error