It is desired to estimate the mean total compensation of CEOs in the Service industry. Data were randomly collected from 18 CEOs and the 95% confidence interval was calculated to be ($2,181,260, $5,836,180). Based on the interval above, do you believe the mean total compensation of CEOs in the Service industry is more than $3,000,000? a. Yes, and I am 95% confident of it. b. Yes, and I am 78% confident of it. c. I am 95% confident that the mean compensation is $3,000,000. d. I cannot conclude that the mean exceeds $3,000,000 at the 95% confidence level. 2. An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past five years, the mean daily revenue was $675 with a population standard deviation of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null hypothesis that the daily mean revenue was $675, which test would you use? a. Z test of a population mean b. Z test of a population proportion c. t test of population mean d. t test of a population proportion 3.On the average, 1.8 customers per minute arrive at any one of the checkout counters of a grocery store. What type of probability distribution can be used to find out the probability that there will be no customer arriving at a checkout counter? a. binomial distribution b. Poisson distribution c. All of these d. None of these 4.

If you know that the level of significance ( ) of a test is 5%, you can tell that the probability of committing a Type II error ( ) is 2.5%. 95%. 97.5%. unknown. 5. A major DVD rental chain is considering opening a new store in an area that currently does not have any such stores. The chain will open if there is evidence that more than 5,000 of the 20,000 households in the area are equipped with DVD players. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have DVD players. State the test of hypothesis that is of interest to the rental chain. H0: 0.32 versus H1: > 0.32 H0: 0.25 versus H1: > 0.25 H0: 5,000 versus H1: > 5,000 H0: 5,000 versus H1: > 5,000

6.