\emph{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.
- 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.
- Test, at the 5\% level of significance, whether \emph{Liftsforall}'s claim is correct. State your hypotheses clearly. [2]
- State the actual significance level of this test. [1]
The residents in the block of flats have a maintenance contract with \emph{Liftsforall}. The residents pay \emph{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.
\emph{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,
- find the probability that the residents do not pay more than £500 to \emph{Liftsforall} in the next year. [6]