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Hypothesis Testing (Examples)

The document discusses various hypothesis testing scenarios conducted by the Federal Trade Commission (FTC) and other organizations to ensure product compliance with specified standards. It includes examples related to coffee can weights, sewer pipe strength, cereal filling amounts, drug effects on rats, car emissions, battery defects, prescription drug expenditures, supermarket checkout times, CEO tenures, and union membership rates. Each example outlines the hypothesis formulation, testing procedures, and statistical analysis required to draw conclusions based on sample data.

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oybekjon2701
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2 views

Hypothesis Testing (Examples)

The document discusses various hypothesis testing scenarios conducted by the Federal Trade Commission (FTC) and other organizations to ensure product compliance with specified standards. It includes examples related to coffee can weights, sewer pipe strength, cereal filling amounts, drug effects on rats, car emissions, battery defects, prescription drug expenditures, supermarket checkout times, CEO tenures, and union membership rates. Each example outlines the hypothesis formulation, testing procedures, and statistical analysis required to draw conclusions based on sample data.

Uploaded by

oybekjon2701
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Test of Hypothesis

1. The Federal Trade Commission (FTC) periodically conducts statistical studies designed to test the claims that
manufacturers make about their products.
For example, the label on a large can states that the can contains 3 pounds of
coffee. The FTC knows that Hilltop’s production process cannot place exactly 3
pounds of coffee in each can, even if the mean filling weight for the population of
all cans filled is 3 pounds per can. However, as long as the population mean filling
weight is at least 3 pounds per can, the rights of consumers will be protected. Thus,
the FTC interprets the label information on a large can of coffee as a claim by
Hilltop that the population mean filling weight is at least 3 pounds per can.
In the Hilltop Coffee study, the director of the FTC’s testing program made the
following statement: “If the company is meeting its weight specifications, I do not
want to take action against them. But, I am willing to risk a 1% chance of making
such an error.”
For the Hilltop Coffee study, previous FTC tests show that the population standard
deviation can be assumed known with a value of s = .18. Suppose a sample of 36
cans of coffee is selected and the sample mean x is computed as an estimate of the
population mean m.

2. Suppose building specifications in a certain city require


that the average breaking strength of the sewer pipe be more
than 2,400 pounds( 1pound = 453.59237 grams) per foot of
length (i.e., per linear foot). Each manufacturer who wants to
sell pipe in this city must demonstrate that its product meets
the specification.
To illustrate the use of the test, suppose we test 50 sections of
sewer pipe and find the mean and standard deviation for these 50
measurements to be x = 2,460 pounds per linear foot s = 200
pounds per linear foot

3. A manufacturer of cereal wants to test the performance of one of


its filling machines. The machine is designed to discharge a mean
amount of p = 12 ounces (1 ounce = 28.3495231grams) per box,
and the manufacturer wants to detect any departure from this
setting. This quality study calls for randomly sampling 100 boxes
from today's production run and determining whether the mean fill
for the run is 12 ounces per box. Set up a test of hypothesis for this
study, using a = .01.
Suppose the sample yields the following results: n = 100
observations, mean is 11.85 ounces, s = .5 ounce. Use these data to
conduct the test of hypothesis.
4. The effect of drugs has been the subject of considerable research
recently. Suppose a research neurologist is testing the effect of a drug on
response time by injecting 100 rats with its response time. The
neurologist knows that the mean response time for rats not injected with
the drug is 1.2 seconds. She wishes to test whether the mean response
time for drug injected rats differs from 1.2 seconds. Set up the test of
hypothesis for this experiment, using a = 0.01.
Suppose the sampling experiment is conducted with the following
results: n = 100, mean is 1.05 seconds, s = 0.5 second.
Use these data to conduct the test of hypothesis.

5. A major car manufacturer wants to test a new engine to determine


whether it meets new air-pollution standards. The mean emission μ of all
engines of this type must be less than 20 parts per million of carbon. The
engines are manufactured for testing purposes, and the emission level of
each are determined. The data (in parts per million) are listed below:
15,6; 16,2; 22,5; 20,5; 16,4; 19,4; 16,6; 17,9; 12,7; 13,9
Do the data supply sufficient evidence to allow the manufacturer to
conclude that this type of engine meets the pollution standard? Assume that the manufacturer is willing to risk
with probability α = 0,01

6. The reputation (and hence sales) of many businesses can be severely


damaged by items that contain a large percentage of defectives.
For example, a manufacturer of alkaline batteries may want to be
reasonably certain that fewer than 5% of its batteries are defective.
Suppose 300 batteries are randomly selected from a very large shipment;
each is tested and 10 defective batteries are found. Does this provide
sufficient evidence for the manufacturer to conclude that the fraction
defective in the entire shipment is less than .05?
Use a = .01.
More examples
Hypothesis testing
7. Annual expenditure for prescription drugs was $838 per person in the Northeast of the country. A sample of
60 individuals in the Midwest showed a per person annual expenditure for prescription drugs of $745. Use a
population
standard deviation of $300 to answer the following questions.
a. Formulate hypotheses for a test to determine whether the sample data support the conclusion that the
population annual expenditure for prescription drugs per person is lower in the Midwest than in the Northeast.
b. What is the value of the test statistic?
c. What is the p-value?
d. At a 5 .01, what is your conclusion?

8. CCN and ActMedia provided a television channel targeted to individuals waiting in supermarket checkout
lines. The channel
showed news, short features, and advertisements. The length of the program was based on the assumption that
the population mean time a shopper stands in a supermarket checkout line is 8 minutes. A sample of actual
waiting times will be used to
test this assumption and determine whether actual mean waiting time differs from this
standard.
a. Formulate the hypotheses for this application.
b. A sample of 120 shoppers showed a sample mean waiting time of 8.4 minutes. Assume a population standard
deviation of s = 3.2 minutes. What is the p-value?
c. At a = .05, what is your conclusion?
d. Compute a 95% confidence interval for the population mean. Does it support your conclusion?

9. A shareholders’ group, in lodging a protest, claimed that the mean tenure for a chief executive office (CEO)
was at least nine years. A survey of companies reported in The Wall Street Journal found a sample mean tenure
of x = 7.27 years for CEOs with a standard deviation of s = 6.38 years.
a. Formulate hypotheses that can be used to challenge the validity of the claim made by the shareholders’ group.
b. Assume 85 companies were included in the sample. What is the p-value for your hypothesis test?
c. At a = .01, what is your conclusion?
10. The U.S. Bureau of Labor Statistics reports that 11.3% of U.S. workers belonged to unions in 2013.
Suppose a sample of 400 U.S. workers is collected in 2018 to determine whether union efforts to organize have
increased union
membership.
a. Formulate the hypotheses that can be used to determine whether union membership increased in 2018.
b. If the sample results show that 52 of the workers belonged to unions, what is the p-value for your hypothesis
test?
c. At a = .05, what is your conclusion?

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