Ask Microeconomics Expert

Consider an instrument that is used to measure temperature (°F) inside of an office building. Such an instrument hangs on a wall just outside of Dilbert's cubicle. Dilbert's office building is temperature-controlled, and set to a year-round mean temperature of 68°F, with a standard deviation of 6°F.

Dilbert found an article online that claims that uncomfortable temperatures in the workplace make unproductive workers. Specifically, it states that temperatures below 66°F or above 71°F have been shown to make employees uncomfortable -- sleepy and/or grumpy. Dilbert will be evaluated by his boss next month, and he now thinks that he will blame his lack of productivity on uncomfortable temperatures in the office. He decides that the next day he will meticulously check and record the temperature every 15 minutes for 8 hours. In this sample of size 32, he finds that the average temperature is 66.4°F with a standard deviation of 6.2.

1) Identify the given parameters, statistics and sample size. Use correct notation!

2) What is the sampling distribution of the average temperature for all such samples of size 32? Justify.

3) Compute the probability that the average temperature Dilbert will observe is considered uncomfortable (thus causing his lack of productivity.)

4) Dilbert doubts that the year-round mean temperature in the office is 68°F, as is claimed by the thermostat. He thinks that it must be lower, causing his excessive drowsiness. Test an appropriate hypothesis at the .05 level of significance. a. Write the null and alternative hypotheses.

b. State the null hypothesis in words.

c. What would be the implications of a Type I error in this case? What is the probability of making this type of error?

d. Compute the statistic and define the critical region.

e. What is your conclusion, and interpretation?

5) Provide a 95% confidence interval for the true mean temperature. (Assume that population parameters are unknown.) Interpret.

Determined to prove his point, Dilbert continues to collect data for a period of 30 workdays. He records each day as "comfortable" if the average temperature for the day is between 66 and 71 degrees, and "uncomfortable" otherwise. The probability that a day will be uncomfortable has already been computed in problem #3. In his sample of 30 days, only 2 days qualified as uncomfortable.

6) Identify the population and sample proportions of uncomfortable days, using correct notation.

7) Using sample data only, estimate the true proportion of uncomfortable days by computing a 95% confidence interval. Interpret. Does the CI include the parameter value?

8) During the evaluation, Dilbert tells his boss that his lack of productivity is due to uncomfortable temperatures in the office, which affect at least 15% of his work days. Using all the information above, do you think Dilbert makes a valid point? Explain your answer using any of the above computations, and discuss your concerns about the data provided.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91334259
  • Price:- $30

Guranteed 24 Hours Delivery, In Price:- $30

Have any Question?


Related Questions in Microeconomics

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question recycling is a relatively inexpensive solution to

Question: Recycling is a relatively inexpensive solution to much of the environmental contamination from plastics, glass, and other waste materials. Is it a sound policy to make it mandatory for everybody to recycle? The ...

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question consider two approaches to reducing emissions of

Question: Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermin ...

Question the state of colorado requires oil and gas

Question: The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefit ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question four firms called elm maple oak and cherry produce

Question: Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 sho ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As