BUSS/STATS
posted by TIM .
Steve cutter sells big blade lawn mowers in his hardware store, and he is interested in comparing the reliability of the mowers he sells with the reliability of Big blade mowers sold nationwide. Steve knows that only 15 percent of all Big Blade mowers sold nationwide require repairs during the first year of ownership. A sample of 120 of Stevefs customers revealed that exactly 22 of them required mower repairs in the first year of ownership. At the .02 level of significance, is there evidence that Stevefs big blade movers differ in reliability from those sold nationwide?
1. The appropriate null hypothesis is:
a. ƒÊ = .15
b. ƒÎ = .15
c. ƒÊ ‚.15
d. ƒÎ ‚.15
e. p = .15
2. Assume the same facts as above, except that is is known that the alternative has a ‚ in it (that may or may not be the case above.) the critical value would then be +:
a. 1.96
b. 2.05
c. 2.33
d. 2.58
e. 3.499 Letter corresponding to the Test Statistic to be used is ______ (Use Letters A  K)

A a
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