1. Bob Nale is the owner of Nale's Quick Fill. Bob would like to estimate the mean number of gallons of gasoline sold to his customers. Assume the number of gallons sold follows the normal distribution with a population standard deviation of 2.50 gallons. From his records, he selects a random sample of 50 sales and finds the mean number of gallons sold is 7.40. a.What is the point estimate of the population mean? b.Determine the standard error of the mean. c. Develop a 98 percent confidence interval for the population mean. (d) Interpret the meaning of part (c).

2. Heinz, a manufacturer of ketchup, uses a particular machine to dispense 16 ounces of its ketchup into containers. From many years of experience with the particular dispensing machine, Heinz knows the amount of product in each container follows a normal distribution with a mean of 16 ounces and a standard deviation of 0.15 ounce. A sample of 50 containers filled last hour revealed the mean amount per container was 16.017 ounces. Does this evidence suggest that the mean amount dispensed is more than 16 ounces? Use the .05 significance level.

a. State the null hypothesis and the alternate hypothesis.

b. What is the probability of a Type I error? Give an example.

c. Give the formula for the test statistic.

d. State the decision rule.

e. Determine the value of the test statistic.

f. What is your decision regarding the null hypothesis?