S2 June 2015 Q5

EdexcelOld spec12 marksIncludes hypothesis testingPoisson Distribution

5. Liftsforall claims that the lift they maintain in a block of flats breaks down at random at a mean rate of 4 times per month. To test this, the number of times the lift breaks down in a month is recorded.

(a) Using a 5% level of significance, find the critical region for a two-tailed test of the null hypothesis that ‘the mean rate at which the lift breaks down is 4 times per month’. The probability of rejection in each of the tails should be as close to 2.5% as possible. (3)

Over a randomly selected 1 month period the lift broke down 3 times.

(b) Test, at the 5% level of significance, whether Liftsforall’s claim is correct. State your hypotheses clearly. (2)
(c) State the actual significance level of this test. (1)

The residents in the block of flats have a maintenance contract with Liftsforall. The residents pay Liftsforall £500 for every quarter (3 months) in which there are at most 3 breakdowns. If there are 4 or more breakdowns in a quarter then the residents do not pay for that quarter.

Liftsforall installs a new lift in the block of flats.

Given that the new lift breaks down at a mean rate of 2 times per month,

(d) find the probability that the residents do not pay more than £500 to Liftsforall in the next year. (6)