statistics 495427

Summer 2013 ?Problem Set #3 Hypothesis Testing ?  1. University of Maryland University College is concerned that out of state students may be receiving lower grades than Maryland students. Two independent random samples have been selected: 175 observations from population 1 (Out of state students) and 187 from population 2 (Maryland students). The sample means obtained are X1(bar)=85 and X2(bar)=86. It is known from previous studies that the population variances are 9.2 and 8.3 respectively. Using a level of significance of .01, is there evidence that the out of state students may be receiving lower grades? Fully explain your answer. ?  Simple Regression 2.  A CEO of a large plastics manufacturing company would like to determine if she should be placing more money allotted in the budget next year for television advertising of a new baby bottle marketed for controlling reflux and reducing gas. She wonders whether there is a strong relationship between the amount of money spent on television advertising for this new baby bottle called Gentle Bottle and the number of orders received. The manufacturing process of this baby bottle is very difficult and requires advanced quality control so the CEO would prefer to generate a stable number of orders. The cost of advertising is always an important consideration in the phase I roll-out of a new baby bottle. Data that have been collected over the past 20 months indicate the amount of money spent of television advertising and the number of orders received. The use of linear regression is a critical tool for a manager’s decision-making ability. Please carefully read the example below and try to answer the questions in terms of the problem context. The results are as follows: ?  ?  Month?Advertising Cost ?Number of…