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Hypothesis Testing Example

The document presents four examples of hypothesis testing in various scenarios. It includes a credit manager's claim about customer balances, a bottling machine's output, the lifetime of light bulbs with a new device, and a labor union's wage claim. Each example outlines the sample data, means, standard deviations, and significance levels for testing the respective hypotheses.

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kebedegelebo75
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2 views

Hypothesis Testing Example

The document presents four examples of hypothesis testing in various scenarios. It includes a credit manager's claim about customer balances, a bottling machine's output, the lifetime of light bulbs with a new device, and a labor union's wage claim. Each example outlines the sample data, means, standard deviations, and significance levels for testing the respective hypotheses.

Uploaded by

kebedegelebo75
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Hypothesis testing example

1. The credit manager of a large department store claims that the mean balance for the
store’s charge account customers is $410. An independent auditor selects a random
sample of 18 accounts and finds a mean balance of × = $511.33 and a standard deviation
of s=$183.75. If the manager’s claim is not supported by these data, the auditor intends to
examine all charge account balances. If the population of account balances is assumed to
be approximately normally distributed, at 95%. What action should the auditor take?
2. An automatic bottling machine fills oil 2-liter (2000cm 3) bottles. A consumer advocate
want to test null hypothesis that the average amount filled by the machine into a bottle is
at least 2000 cm3. A random sample of 40 bottles coming out of a machine was selected
and the exact content of the bottle are recorded the sample mean was 1999.6 cm 3. The
population standard deviation is known from past experience to be 1.30 cm 3. level of
significance α =5 %∨0.05
3. The light bulbs in an industrial warehouse have been found to have a mean lifetime of
1030.0 hours, with a standard deviation of 90.0 hours. The warehouse manager has been
approached by a representative of Extendabulb, a company that makes a device intended
to increase bulb life. The manager is concerned that the average lifetime of Extendabulb-
equipped bulbs might not be any greater than the 1030 hours historically experienced. In
a subsequent test, the manager tests 40 bulbs equipped with the device and finds their
mean life to be 1061.6 hours at 95%.
4. A labors’ union is on strike for higher wages . the unions claims that are the mean salary
for workers is at most birr 8400 per year . the company does not want to reject the union
claim however ,unless the evidence is very strong against it. Assume that salaries follow a
normally distribution and the population standard deviation is known to be birr 3000.
A random sample of 64 workers is obtained and the sample mean is birr ,9400. Test if the
state company accepts unions claims or not at 1% significance level.

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