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CO2024 Tutorial Hypothesis Testing

The document discusses different types of hypothesis tests: two-tailed tests, left-tailed tests, and right-tailed tests. It provides the key aspects of each test, including the signs in the null and alternative hypotheses and the rejection regions. Formulas are presented for hypothesis testing on a mean when the population standard deviation is known or unknown, as well as for testing a proportion. Examples of hypothesis tests on means, proportions, and their statistical approaches are also included.

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43 views4 pages

CO2024 Tutorial Hypothesis Testing

The document discusses different types of hypothesis tests: two-tailed tests, left-tailed tests, and right-tailed tests. It provides the key aspects of each test, including the signs in the null and alternative hypotheses and the rejection regions. Formulas are presented for hypothesis testing on a mean when the population standard deviation is known or unknown, as well as for testing a proportion. Examples of hypothesis tests on means, proportions, and their statistical approaches are also included.

Uploaded by

Pina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Hypothesis Testing

Two-Tailed Test Left-Tailed Test Right-Tailed Test


Sign in the null = = or ≥ = or ≤
hypothesis H0
Sign in the alternate ≠ < >
hypothesis Ha
Rejection region In both tails In the left tail In the right tail
Critical value is ± Critical value is -ve Critical value is +ve

Formulae
Mean σ known
x̄ - μ
zcalculated = σ
x̄
σ x̄= σ
√n
Where
x̄ = Sample mean
μ = Population mean
σ x̄ = Standard error of mean / Standard Deviation of the Sample Means
n
If > 0.05 use FCF
N
N−n
FCF =
√ N−1
σ x̄ = σ x FCF
√n
x̄ - μ
Zcalculated = σ
x̄
Where
x̄ = Sample mean
μ = Population mean
σ x̄ = Standard error of mean / Standard Deviation of the Sample Means
N = Population size
n = Sample size
FCF = Finite Correction Factor or Finite Multiplication Factor

Page 1 of 4
Hypothesis Testing

Mean σ not known, sample size small < 30


Use T Distribution
x̄ - μ
Tcalculated =
s x̄
s
s x̄=
√n
Where
x̄ = Sample mean
μ = Population mean
s x̄ = Standard error of mean / Standard Deviation of the Sample Means

Proportion
p^ - p
Zcalculated = σp^

p xq
σp^ =
√ n

where
p^ = sample proportion
σp^ = Standard error of sample proportion
n = sample size
p = population proportion
q=1-p

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Hypothesis Testing

1. A telephone company provides long-distance telephone service in an area. According to


the company’s records, the average length of all long-distance calls placed through this
company in 2009 was 12.44 minutes. The company’s management wanted to check if
the mean length of the current long-distance calls is different from 12.44 minutes. A
sample of 150 such calls placed through this company produced a mean length of 13.71
minutes. The standard deviation of all such calls is 2.65 minutes. Using the 2%
significance level, can you conclude that the mean length of all current long-distance
calls is different from 12.44 minutes?

2. A survey of the morning beverage market shows that the primary breakfast beverage for
17% of Americans is milk. A milk producer in Wisconsin, where milk is plentiful, believes
the figure is higher for Wisconsin. To test this idea, a researcher contacts a random
sample of 550 Wisconsin residents and asks which primary beverage they consumed for
breakfast that day. 115 replied that milk was the primary beverage. Using a level of
significance of 0.05, test the idea that the milk figure is higher for Wisconsin.

3. A manufacturer of hooks for cranes used for lifting gold rods/ingots claims that the mean
breaking strength of his hooks is more than 500 kg. A sample of 10 hooks was randomly
drawn and the mean breaking strength of these hooks turned out to be 490 kg with a
standard deviation of 12 kg. Can you accept the claim of the manufacturer at 5 %
significance level?
t Value for one tailed
5% for 9 d.f. = 1.833
5% for 10 d.f. = 1.812

t Value for two tailed


5% for 9 d.f. =2.262
5% for 10 d.f. =2.228

4. Royal Tyres has launched a new brand of tyres for tractors and claims that under normal
circumstances the average life of the tyres is 40,000kms. A retailer wants to test this
claim and has taken a random sample of 8 tyres and tests the tyres under normal
circumstances. The results obtained are as below. Use α=0.05 for testing the hypothesis
Tyres 1 2 3 4
Kms 35,000 38,000 42,000 41,000
Tyres 5 6 7 8
Kms 39,000 41,500 43,000 38,500

5. The MacDonald restaurant chain claims that the waiting time of customers for service is
normally distributed, with a mean of 3 minutes and a standard deviation of 1 minute. The
quality-assurance department found in a sample of 50 customers at the Mani-Square
MacDonald outlet that the mean waiting time was 2.75 minutes. At the.05 significance
level, can we conclude that the mean waiting time is less than 3 minutes?

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Hypothesis Testing

6. A large auto parts manufacturers investigated the service it received from suppliers and
discovered that in the past, 30% of all materials shipments were received late, The
company installed a just-time system in which suppliers are linked more closely to the
manufacturing process. A random sample of 150 deliveries reveals that 42 deliveries
were late. Test at 10% level of significance Whether there is a significant reduction in
proportion of late deliveries.

7. A pharmaceutical firm maintains that the mean time for a drug to take effect is 24
minutes. In a sample of 400 trials, the mean time is 26 minutes with a standard deviation
of 4 minutes. Test the hypothesis that the mean time is 24 minutes against the alternative
that it is not equal to 24 minutes. Use a level of significance of 0.05.

8. The percentage of female employees in a particular company is known to be 30 percent,


The company wants to increase the proportion of females in the workforce and initiates a
number of initiatives towards this end. After the campaign is over, a survey of 100
employees shows that 35 of them are females. Can the company conclude at 5% level of
significance that its initiatives have borne fruit?

9. In India, color tv (CTV) market has grown rapidly and is estimated to reach 21 million
units by 2014-2015. 30% of the market is catered to by 20” CTVs. A researcher believes
that the market size for 20” CTVs has increased. For testing this belief the researcher
has taken a random sample of 130 CTV purchasers. Out of 130 purchasers, 50
purchased 20” CTVs. Use α=0.05 for testing the hypothesis.

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