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Assignment No.2 (Testing of Hypothesis About Population Mean)

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20 views1 page

Assignment No.2 (Testing of Hypothesis About Population Mean)

Uploaded by

bv9kc2b5fz
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
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Practice Questions

Q#1:- General Electric Company has developed a new bulb whose design specifications call for a light
output of 960 lumens compared to an earlier model that produced only 750 lumens. The company’s
data indicate that the standard deviation of light output for this type of bulb is 18.4 lumens. From a
sample of 20 new bulbs, the testing committee found an average light output of 954 lumens per bulb.
At a 0.05 significance level, can General Electric Company conclude that its new bulb is producing the
specified 960 lumen output?

Q#2:- Maxwell’s Hot Chocolate is concerned about the effect of the recent yearlong coffee advertising
campaign on hot chocolate sales. The average weekly hot chocolate sales two years ago was 984.7
pounds and the standard deviation was 72.6 pounds. Maxwell’s has randomly selected 30 weeks from
the past year and found average sales of 912.1 pounds. Test at 2% level of significance whether hot
chocolate sales have decreased.

Q#3:- The average commission charged by full-service brokerage firms on a sale of common stock is $ 144,
and the standard deviation is $ 52. Mr. Basharat has taken a random sample of 121 trades by his clients
and determined that they paid an average commission of $ 151. At a 10% significance level, can Mr.
Basharat conclude that his clients’ commissions are higher than the industry average?

Q#4:- Each day, the United States Customs Service has historically intercepted about $28 million in
contraband goods being smuggled into the country, with a standard deviation of $16 million per day.
On 64 randomly chosen days in 1992, the U.S. Customs Service intercepted an average of $ 30.3
million in contraband goods. Does this sample indicate (at a 5 percent level of significance) that the
Customs Commissioner should be concerned that smuggling has increased above its historic level?

Q#5:- Wasim took a random sample of 12 homes in a prestigious suburb of Chicago and found the average
appraised market value to be $ 780,000, and the standard deviation was $ 49,000. Test the hypothesis
that for all homes in the area, the mean appraised value is $ 825,000 against the alternative that it is less
than $ 825,000. Use the 0.05 level of significance.

Q#6:- For a sample of 60 women taken from a population of over 5000 enrolled in a weight-reducing
program at a nationwide chain of health spas, the sample mean diastolic blood pressure is 101 and the
sample standard deviation is 42. At a significance level of 0.02, on average, did the women enrolled in
the program have diastolic blood pressure that exceeds the value of 75?

Q#7:- A television documentary on overeating claimed that Americans are about 10 pounds overweight on
average. To test this claim, eighteen randomly selected individuals were examined; their average
excess weight was found to be 12.4 pounds, and the sample standard deviation was 2.7 pounds. At a
significance level of 0.01, is there any reason to doubt the validity of the claimed 10-pound value?

Q#8:- Given a sample mean of 94.3, sample standard deviations of 8.4, and a sample size of 6, test the
hypothesis that the value of the population mean is 100 against the alternative hypothesis that it is less
than 100. Use the 5% significance level.

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