CAMAD COLLEGE

CLASS WORK – 2025

HYPOTHESIS TESTING

• A study on expenditure behaviour of tourist in Nepal revealed that the average expenditure of
100 indian tourist per day In Rs. 9200 with standard deviation of Rs. 500. Also the average
expenditure of 80 Chinese tourists per day in Rs. 10,000 with S.D. Rs. 600. Can you conclude that
the expenditure behavior of Indian and Chinese tourists is same? Support your answer with 5%
significance?

• Machine is used to cut wheels of cheese into blocks of specified weight. On the basis of long
experience it has been observed that the weight of the blocks is normally distributed with a
standard deviation of 0.3 kg. The machine is currently set to cut the block of weight 12 kg. A
sample of 9 blocks is found to have an average block of weight 12.25 kg. Set up the null
hypothesis and determine whether it is a one tailed or two tailed test. Use the p- value approach
to determine whether the cutting machine needs to be recalibrated.

• An educator claims that the average 1.Q. of a city college student atmost 110, and that the study
made to test this claim 150 city college students selected at random had an average I.Q. of 111.2
with a standard deviation of 7.2. Use a significance of 0.01 to test the claim of educator.

• According to a recent survey, Americans get a mean of 7 hours of sleep per night. A random
sample of 50 students at West Virginia University revealed the mean number of hours slept last
night was 6.8 hours. The standard deviation of the sample was 0.9 hours. Is it reasonable to
conclude that students at West Virginia sleep less than the typical American?

• A random sample of boots worn by 40 combat soldiers in a desert region showed an average life
of 1.08 years with a standard deviation of 0.05 years. Under the standard conditions the boots
are known to have an average life of 1.28 years. Is there reason to assert at a level of significance
of 0.05 that use in the desert causes the mean life of such boots to decrease?

• Before an increase in excise duty on coffee 800 out of a sample of 1000 persons were known to
be taking coffee. After the increase in the duty 800 persons are now found to be taking coffee in
a sample of 1200. Do you think that there has been a significant decrease in the consumption of
coffee after the increase in the excise duty? Test at 5% level of significance.
• The purchasing director for an industrial parts factory is investigating the possibility of
purchasing a new type of milling machine. She determines that the new machine will be bought
if there is evidence that the parts produced have a higher breaking strength than those from the
old machine. The population standard of the breaking strength to the old machine is 10 kgs and
for the new machine is 9kgs. A sample of 100 parts taken hom the old machine indicates a
sample mean of 65 kgs, whereas a similar sample of 100 from the new machine indicates a
sample mean of 72 kgs. Is there evidence that the purchasing director should buy the new
machine? Use p value approach to hypothesis testing. consider alpha=0.05

• The University Bookstore is facing significant competiton from off campus bookstores and they
are targeting a specific class in order to retain student business. The bookstores randomly
sampled 150 freshmen and 175 sophomores. They found that 50 percent of the freshmen and
45% of the sophomores purchase their textbooks at the University Bookstore. At 0.04 level of
significance, is there evidence that the proportions of freshmen are higher as compared to
sophomores who purchase their textbooks at the university Bookstore?

• A quality control manager would like to observe the number of defective pieces of an item
produced by Machine-X as well as Machine-Y. The manager of the firm buying the item believes
that the proportion of the number of defective pieces in the lot me lot produced by the
Machine-X. is higher than the prop of the number of defective pieces in the lot produced by
machine Y. So, the quality assistant under him selected a sample of 100 trom the production of
the Machine-X and found that the number of defective pieces in it is 10. Similarly, he selected a
sample of 90 pieces from the production of the Machine-Y and found that the number of
defective pieces in it is 6. Check the intuition of the quality control manager at the significance
level of 0.10.

• In a metropolitan City it was observed that 500 out of 1500 men are against the green Sticker
Control policy" in vehicles. Based on this information Can you Conclude that majority of the
people in the town are in favour of the policy, assuming that people in favour and disfavour are
equal.
Hints: Sample size (n) = 1500
Success events
The no. of men in favour of GSCP (X) = 1500-500=1000;
p = x/n = 1000/1500 = 0.67; P = Q = ½

• Before an increase in excise duty on Coffee 800 out of a sample of 1000 persons were known to
be taking Coffee. After the increase in duty 800 persons are now found to be taking Coffee in a
sample of 1200. Do you think that there has been a Significant decrease in the Consumption of
coffee after the increase in the excise duty 2.
Hints: Null hypothesis (Ho): P 1 =P2 i.e there is no significant diff betn two population proportion
Alt Hypothesis (H1): P1>P2 i.e There is a significant decrease in the consumption of coff....
p1= x1/n1 , p2=x2/n2
P = (n1p1+n2p2)/n1+n2
Q= 1-P