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Hypothesis Testing Problems

1) The null hypothesis is that the mean mileage is equal to 60,000 km and the alternative is that it is not equal to 60,000 km. 2) The significance level is 0.05. 3) The test statistic is calculated as Z = (X-M)/SD/sqrt(N) where X is the sample mean, M is the population mean, SD is the population standard deviation, and N is the sample size. 4) The critical Z value is found from the table. 5) The calculated Z value is compared to the critical value to determine whether to reject or fail to reject the null hypothesis.

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Amol Jadhav
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21 views

Hypothesis Testing Problems

1) The null hypothesis is that the mean mileage is equal to 60,000 km and the alternative is that it is not equal to 60,000 km. 2) The significance level is 0.05. 3) The test statistic is calculated as Z = (X-M)/SD/sqrt(N) where X is the sample mean, M is the population mean, SD is the population standard deviation, and N is the sample size. 4) The critical Z value is found from the table. 5) The calculated Z value is compared to the critical value to determine whether to reject or fail to reject the null hypothesis.

Uploaded by

Amol Jadhav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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HYPOTHESIS TESTING FO

Problem
Kiran steel company manufactures computer Desk and weekly production follows norm
and standard deviation of 16 desks. Company introduecs new process for improving pr
A sample of 50 weeks production taken and mean desks production found to be 203.5
Marketing Head wants to establish whether there has been any change in the weekly p

Step 1 - state Null and Alternate Hypothesis


Ho: = 200
μ
H1 : μ ≠ 200
Two Tailed Test
Step 2 - select level of significance
α = .01
Step3 - select Test statistic
Normal Distribution with Population deviation σ known
Hence Z statistic
z =( x̄ - μ) /( σ/ √ n) x̄ sample Mean
μ Population Mean
σ Population standard deviation
n sample size

Step 4 - Formulate Decision Rule


Find critical value of Z
Z critical

Z critical From Table z = 2.58 ( area = 0.5 - .005 = 0.495


z for 0.495 = 2.58)

Decision Rule
Compute Z value from sample
If z computed > 2.58 Reject H0
If z < -2.58 Reject H0

Step 5 - Make decision and interpret the result


z computed =( x̄ - μ) /( σ/ √ n)

z
computed 1.55
Decision and Inference

As Z calculated falls within Z critical value - Do not Reject H0


This means that there has been no significant improvement in production
due to process change.
HESIS TESTING FOR ONE POPULATION MEAN

uction follows normal distribution with a mean of 200 desks


s for improving production.
found to be 203.5 desks.
nge in the weekly production or not at .01 significance level.

Two Tailed Test

deviation
z critical
n production
Heinz ketcup uses a perticular machine to dispense 16 ounce of ketchup into container, heinz knows the anount of product
in each container follows normal distribution with a mean of 16% ounce and a standard deviation of 15% ounces, a sample
of 50 containers fill in the last hour reveal the mean amount per container was 16.017 ounce, does the evidence suggest
that the mean amount dispence is different from 16 ounce, us DS signigicance level

1. State null and alternative hypothesis


2. State level of significant
3. Determine the test statistics
z computed =( x̄ - μ) /( σ/ √ n)
4. Formulate decission rule

1. Ho
H1

Alpha
m
sd
n
x
M>_ 16.017
M<16.017

0.05
16
0.15
50
16.017
Recent Insurance industry report indicated that 40% of those involed in minor traffic accident this year have been
inovled in atleast one other trafic accident also, a group belive this to be too large and wanted to investigate a
sample of 200 trafic this year showed 74 were involed in another accident within the last 5 year use .01 significant
level and infer

1. State null and void


HO P> Equal to 0.4
H1:P<0.4

np>10

Step1
n
p (proportion)
np>10
Formula

Step 2
n(1-p) >10
120

Now we have concuded both the condition are fullfilled so normal distribution can be applied

Step 3
Calculate the z critical value

0.49
Z value in table is 2.33
0.4901

Step 5
0.0012

0.37
0.4

-0.866025403784439
>_ 0.4
< 0.4

200
0.4

80

0.034641 This is the standard deviation denominator

P hat value
P

Answer
MRF claims that mean mileage of their truck tire MX that can be
driven before tread wears out is 60,000 Km. The population
standard deviation of the mileage is 5000 Km. Agarwal truck
company bought 48 tires and found that mean mileage for its
trucks is 59,500 Km. Is the Agarwal’s experience different from
that claimed by the manufacturer at .05 significance level?

Define null and alternative hypothesis 60k or not equal to 60 k


Define significat level 0.5 0.45
Define test statics X 59500
Find Z critical
Define and interpriate X-M/SD/SQTN
t equal to 60 k

M 60000 SD 5000 N 48

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