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1. Last year, Normal, Illinois, had all car maintenance on the city’s automobiles done by the city maintenance pool. The cost was $364 per car. This year, the city officials (and mothers) fired all the workers in the maintenance pool and are using Jack’s Crash Shop to perform the maintenance. They would like to know, without a complete audit, whether Jack is saving them money. A random sample of 36 cars showed a mean repair cost of $330, with a standard deviation of $120. What can you tell the city officials?

2. The Wisconsin State Court system wants to assess the impact that punitive damages have on large tort awards. Using the court system’s computer, 16 cases were selected at random from all those cases in which damages of $1 million or more were awarded. The sample revealed the following about the punitive damages in these cases:
Mean= $74,000 standard deviation= $55,000
Place a 99% confidence limit around your best estimate of the punitive damages for this type of case. One concern is that punitive damages for these cases might be in excess of $100,000. Present a hypothesis and a null hypothesis and evaluate your hypotheses. Finish with a conclusion that a judge could understand.

3. After a massive inventory, Central Library finds 12% of its volumes missing. As a result, Central institutes new procedures to prevent theft. After instituting these procedures for 1 year, Central Library wants to know whether they are working, but it cannot afford the cost of a complete inventory. The library takes a sample of 200 books and cannot locate 14 of them. These 14 are assumed to be lost to theft. What can you say about the new procedures?

4. If the error rate for TANF (Temporary Assistance for Needy Families) payments is greater than 5%, the federal government will cut off funding to the state of Utah. To see whether this is a problem, the agency director takes a sample of 250 TANF recipients and finds that errors have been made in 18 cases. What is your best estimate of the error rate in Utah? Place a 90% confidence limit around this estimate. Present a hypothesis and a null hypothesis and evaluate them. State a conclusion in plain English.

5. For each of the following statements, list the independent and dependent variables, and give the research hypothesis and the null hypothesis.
1. An official at the state transportation office thinks that switching over from manual to automated toll collection will decrease administrative costs and asks you to do a survey of other states costs and collection practices to determine if this is true.
2. The local firefighter’s union in your town claims that its salaries are lower than those of firefighters in other towns.
3. A legal advocacy group charges that local cops are pulling over Black drivers at higher rates than White drivers.
4. A city official claims that the recent decrease in crime can be attributed to the city’s new neighborhood watch program.

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