Developing Null and Alternative Hypotheses

1. The manager of the Danvers-Hilton Resort Hotel stated that the mean guest bill for a weekend
is $600 or less. A member of the hotel’s accounting staff noticed that the total charges
for guest bills have been increasing in recent months. The accountant will use a sample of
weekend guest bills to test the manager’s claim.
Ho U<=600
Ha U>600

2. The manager of an automobile dealership is considering a new bonus plan designed to increase
sales volume. Currently, the mean sales volume is 14 automobiles per month. The
manager wants to conduct a research study to see whether the new bonus plan increases
sales volume. To collect data on the plan, a sample of sales personnel will be allowed to
sell under the new bonus plan for a one-month period.
Ho U<=14
Ha U>14

3. A production line operation is designed to fill cartons with laundry detergent to a mean
weight of 32 ounces. A sample of cartons is periodically selected and weighed to determine
whether underfilling or overfilling is occurring. If the sample data lead to a conclusion of
underfilling or overfilling, the production line will be shut down and adjusted to obtain
proper filling.
Ho U=32
Ha U=x32

4. Because of high production-changeover time and costs, a director of manufacturing must

convince management that a proposed manufacturing method reduces costs before the new
method can be implemented. The current production method operates with a mean cost of
$220 per hour. A research study will measure the cost of the new method over a sample
production period.

Ho U>=220
Ha U<220
bill for a weekend

sample of

signed to increase

n increases

to a mean
o determine

cturing must
efore the new
mean cost of
 COMPARISONS BETWEEN MEANS WITH ONE POPULATION

1) The sponsors of televisions shows targeted at the market of 5 – 8 year olds want to test the h
that children watch television at most 20 hours per week. The population of viewing hours per
known to be normally distributed with a standard deviation of 6 hours. A market research fir
a random sample of 30 children in this age group. The resulting data follows:

19.5 29.7 17.5 10.4 19.4 18.4

14.6 10.1 12.5 18.2 19.1 30.9
22.2 19.8 11.8 19 27.7 25.3
27.4 26.5 16.1 21.7 20.6 32.9
27 15.6 17.1 19.2 20.1 17.7

At a .10 level of significance, use Excel to test the sponsors’ hypothesis.

Null Hypothesis U<=20

Alternative Hypothesis U>20

Level of Significance 0.1

Sample Size 30
Sample Mean 20.26667
Sample Standard Deviation 6

Hypothesized Value 20

Standard Error 1.095445

Test Statistic (z-test) 0.243432
Degree of Freedom 29

P Value (Lower Tail) 0.596165

P Value (Upper Tail) 0.403835
P Value (Two Tail) 0.807671

Conclusion
Since P Value of 0.4038 is greater than the the confidence level of 0.1, hence we do not r
Due to this, children ages 5-8 years old are watching the television for at most 20 hours.
LATION
2) You are given the following information
olds want to test the hypothesis
of viewing hours per week is 20 18 17 22
A market research firm conducted
ows:
At a 10% level of significance, use Excel to de
which this sample was taken is significantly le

Null Hypothesis
Alternative Hypothesis

Sample Size
Sample Mean
Sample Standard Deviation

Level of Significance
Critical Value

Hypothesized Value
Standard Error
Test Statistics
p-Value upper
Conclusion

Conclusion

.1, hence we do not reject the null hypothesis.

r at most 20 hours.
wing information obtained from a random sample of 5 observations.

18

nce, use Excel to determine whether or not the mean of the population from
en is significantly less than 21. (Assume the population is normally distributed.)

U<=21
U>21

5
19
2

0.1
1.53321

21
0.89443
-2.2361
0.0445 0.9555
Do not reject

Do not reject
Since P Value of 0.987 is greater than the the confidence level of 0.1, hence we do not reject the n
The mean is significantly less than 21.
do not reject the null hypothesis.
 COMPARISONS BETWEEN MEANS WITH TWO POPULATION

1) In order to determine whether or not a driver's education course improves the scores on a driving
before and after taking the course. The results are shown below.

Let d = Score After - Score Before.

Score Score
Student Before the Course After the Course
1 83 87
2 89 88
3 93 91
4 77 77
5 86 93
6 79 83

a. Compute the test statistic.

b.
At 95% confidence using the p-value approach, test to see if taking the course ac
BEFORE AFTER
Sample Mean 84.5 86.5
Sample Size 6 6

Sample Standard Deviation 6.0580524923444 5.7879184514

Standard Error 3.4205262752974

Confidence Coefficent 95% 95%

Level of Significance 0.05 0.05

Difference of Two Means 2

Degree of Freedom 9.9792640352511
T Test 0.5847053462047
Numerator 136.89
Denominator 7.4827222222222 6.2347222222
13.717444444445

P Value (Lower Tail) 0.7134451402438

P Value (Upper Tail) 0.2865548597562
P Value (Two Tail) 0.5731097195125

Conclusion Do not reject

After taking the course, the results have signifi

M1-M2<=0
t-Test: Paired Two Sample for Means

Before the Course After the Course

Mean 84.5 86.5
Variance 36.7 33.5
Observations 6 6
Pearson Correlation 0.824218592719387
Hypothesized Mean Difference 0
df 5
t Stat -1.3912166872805
P(T<=t) one-tail 0.111444668568442
t Critical one-tail 2.01504837333302
P(T<=t) two-tail 0.222889337136883
t Critical two-tail 2.57058183563631

Do not reject
TH TWO POPULATION

he scores on a driving exam, a sample of 6 students were given the exam

if taking the course actually increased scores on the driving exam.

he results have significantly increased.
2) A test on world history was given to a group of individuals before and also after a film o
was presented. The results are given below. We want to determine if the film significantly
(For the following matched samples, let the difference "d" be d = after - before.)

Individual After Before

1 92 86
2 86 88
3 89 84
4 90 90
5 93 85
6 88 90
7 97 91

a. Give the hypotheses for this problem.

b. Compute the test statistic.
c. At 95% confidence, test the hypotheses.
BEFORE AFTER
Sample Mean 90.714286 87.71428571
Sample Size 7 7

Sample Standard Deviation 3.6384193 2.751622898

Standard Error 1.7241778

Confidence Coefficent 95%

Level of Significance 0.05

Difference of Two Means 3

Degree of Freedom 11.171589
T Test 1.7399598
Numerator 8.8374751
Denominator 0.5960788 0.194988199
0.791067

P Value (Lower Tail) 0.945135

P Value (Upper Tail) 0.054865
P Value (Two Tail) 0.10973

Conclusion Reject
The film on the history of the world did not increa

t-Test: Paired Two Sample for Means

Before After
Mean 87.714286 90.714286
Variance 7.5714286 13.238095
Observations 7 7
Pearson Correlati 0.1569614
Hypothesized Mea 0
df 6
t Stat -1.888396
P(T<=t) one-tail 0.0539459
t Critical one-tail 1.9431803
P(T<=t) two-tail 0.1078918
t Critical two-tail 2.4469119

Do not reject
ore and also after a film on the history of the world
ne if the film significantly increased the test scores.
after - before.)
f the world did not increase the test scores of the individuals.
 EXPERIMENTAL DESIGN AND ANALYSIS OF VARIANCE

1. The following data are from a completely randomized design.

Treatment
A
162
142
165
145
148
174
At the α = 0.05 level of significance, test whether the means for the three treatments
are equal.
A
162
142
165
145
148
174
Sample Mean 156
Mean of the Sample Means 144
Variance 164.4

Null Hypothesis A=B=C

Alternative Hypothesis Not all populations are equal

SSTR 1488
SSE 2030
MSTR 744
MSE 135.333333333

F VALUE 5.49753694581
P VALUE 0.01618085704

Decision Rule Reject

Treatments A,B, and C are not equal
Anova: Single Factor

SUMMARY
Groups Count Sum
A 6 936
B 6 852
C 6 804

ANOVA
Source of Variation SS df
Between Groups 1488 2
Within Groups 2030 15

Total 3518 17

Anova: Single Factor

SUMMARY
Groups Count Sum
A 6 936
B 6 852
C 6 804

ANOVA
Source of Variation SS df
Between Groups 1488 2
Within Groups 2030 15

Total 3518 17

Reject
IGN AND ANALYSIS OF VARIANCE

Treatment
B C
142 126
156 122
124 138
142 140
136 150
152 128
ns for the three treatments

B C
142 126
156 122
124 138
142 140
136 150
152 128
142 134

131.2 110.4

populations are equal

P Value < 0.05

ents A,B, and C are not equal
 Average Variance
156 164.4
142 131.2
134 110.4

MS F P-value F crit
744 5.49754 0.01618 3.68232
135.333333333

Average Variance
156 164.4
142 131.2
134 110.4

MS F P-value F crit
744 5.4975369 0.0161809 3.6823203
135.333333333333
26

An important factor in selecting soft

required to learn how to use the sys
five word processing operators. Beca
operators was trained on each of the

Operator

At the α = 0.05 level of significance, t

are equal.
An important factor in selecting software for word processing and database management systems is the tim
required to learn how to use the system. To evaluate three file management systems, a firm designed a test
five word processing operators. Because operator variability was believed to be a significant factor, each of
operators was trained on each of the three file management systems. The data obtained follow.

System
A B
1 16 16
2 19 17
Operator 3 14 13
4 13 12
5 18 17

At the α = 0.05 level of significance, test whether the means for the three treatments
are equal.

System
A B
1 16 16
2 19 17
3 14 13
4 13 12
5 18 17
Null Hypothesis A=B=C
Alternative Hypothesis Not all populations are equal

Rejection Rule Reject

Conclusion The three treatments are not equal.

Anova: Two-Factor Without Replication

SUMMARY Count Sum Average

1 3 56 18.666667
2 3 58 19.333333
3 3 46 15.333333
4 3 43 14.333333
5 3 57 19

A 5 80 16
B 5 75 15
C 5 105 21

ANOVA
Source of Variation SS df MS
Rows 64.6666666666667 4 16.166667
Columns 103.333333333333 2 51.666667
Error 7.33333333333329 8 0.9166667

Total 175.333333333333 14

Reject
agement systems is the time
ems, a firm designed a test involving
a significant factor, each of the five
btained follow.

System
C
24
22
19
18
22

System
C
24
22
19
18
22
Variance
21.333333
6.3333333
10.333333
10.333333
7

6.5
5.5
6

F P-value F crit
17.636364 0.0004942 3.8378534
56.363636 1.9281E-05 4.4589701