BB113 Statistics and Its Application Tutorial 7

Answer Tutorial 7 - Fundamental of Hypothesis Testing One Sample Tests

One-Sample Tests
1. If you use a 0.05 level of significance in a (two-tail) hypothesis test, what will you decide if
ZSTAT = 0.76?
1. Answer
Decision rule: Reject H0 if Z STAT < 1.96 or Z STAT > + 1.96.
Decision: Since ZSTAT = 0.76 is in between the two critical values, do not reject H0.

2. If you use a 0.05 level of significance in a (two-tail) hypothesis test, what will you decide if
ZSTAT = +2.21?
2. Answer
Decision rule: Reject H0 if Z STAT < 1.96 or Z STAT > + 1.96.
Decision: Since ZSTAT = + 2.21 is greater than the upper critical value of + 1.96, reject H0.

3. If you use a 0.10 level of significance in a (two-tail) hypothesis test, what is your decision
rule for rejecting a null hypothesis that the population mean is 500 if you use the Z test?
3. Answer: Decision rule: Reject H0 if Z STAT < 1.645 or Z STAT > + 1.645.

4. If you use a 0.01 level of significance in a (two-tail) hypothesis test, what is your decision
rule for rejecting H0 : = 12.5 if you use the Z test?
4. Answer: Decision rule: Reject H0 if Z STAT < 2.58 or Z STAT > + 2.58.

5. What is the p-value if, in a two-tail hypothesis test, ZSTAT = +2.00?

5. Answer: p-value = 2(1 - .9772) = 0.0456

6. What is the p-value if, in a two-tail hypothesis test, ZSTAT = -1.38?

6. Answer: p-value = 0.1676

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BB113 Statistics and Its Application Tutorial 7

7. The quality-control manager at a light bulb factory needs to determine whether the mean life
of a large shipment of light bulbs is equal to 375 hours. The population standard deviation is
100 hours. A random sample of 64 light bulbs indicates a sample mean life of 350 hours.
(a) At the 0.05 level of significance, is there evidence that the mean life is different from 375
hours?
(b) Compute the p-value and interpret its meaning.
(c) Construct a 95% confidence interval estimate of the population mean life of the light
bulbs.
(d) Compare the results of (a) and (c). What conclusions do you reach?
7. Answer
(a) H0: = 375. The mean life of a large shipment of light bulbs is equal to 375 hours.
H1: 375. The mean life of a large shipment of light bulbs differs from 375 hours.
Decision rule: Reject H 0 if |ZSTAT| > 1.96

X - 350 - 375
Test statistic: Z STAT = = = -2
s / n 100/ 64
Decision: Since |ZSTAT| > 1.96, reject H 0 . There is enough evidence to conclude that the
mean life of a large shipment of light bulbs differs from 375 hours.
(b) p-value = 0.0456. If the population mean life of a large shipment of light bulbs is indeed
equal to 375 hours, the probability of obtaining a test statistic that is more than 2 units away
from 0 is 0.0456.
s 100
(c) X Z a /2 = 350 1.96 325.5005 374.4995
n 64
(d) You are 95% confident that the population mean life of a large shipment of light bulbs is
somewhere between 325.5005 and 374.4995 hours.
Since the 95% confidence interval does not contain the hypothesized value of 375, you will

reject H 0 . The conclusions are the same.

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BB113 Statistics and Its Application Tutorial 7

8. (a) If, in a sample of n = 16 selected from a normal population, X = 56 and S = 12, what
is the value of tSTAT if you are testing the null hypothesis H0 : = 50?
(b) In Problem 8(a), how many degrees of freedom does the t test have?
(c) In Problems 8(a) and 8(b), what are the critical values of t if the level of significance,
, is 0.05 and the alternative hypothesis, H1 , is 50?
(d) In Problems 8(b), 8(c) and 8(d), what is your statistical decision if the alternative
hypothesis, H1 , is 50?
8. Answer
X 56 50
t STAT = =
(a) S 12 = 2.00
n 16
(b) d.f. = n 1 = 16 1 = 15
(c) For a two-tailed test with a 0.05 level of significance, the critical values are 2.1315.
(d) Since t STAT = 2.00 is between the critical bounds of 2.1315, do not reject H0.

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BB113 Statistics and Its Application Tutorial 7

9. One of the major measures of the quality of service provided by any organization is the
speed with which it responds to customer complaints. A large family-held department store
selling furniture and flooring, including carpet, had undergone a major expansion in the past
several years. In particular, the flooring department had expanded from 2 installation crews
to an installation supervisor, a measurer, and 15 installation crews. The store had the
business objective of improving its response to complaints. The variable of interest was
defined as the number of days between when the complaint was made and when it was
resolved. Data were collected from 50 complaints that were made in the past year. The data,
stored in Furniture, are as follows:
54 5 35 137 31 27 152 2 123 81 74 27
11 19 126 110 110 29 61 35 94 31 26 5
12 4 165 32 29 28 29 26 25 1 14 13
13 10 5 27 4 52 30 22 36 26 20 23
33 68
The installation supervisor claims that the mean number of days between the receipt of a
complaint and the resolution of the complaint is 20 days. At the 0.05 level of significance, is
there evidence that the claim is not true (i.e., that the mean number of days is different from
20)?
Perform this test using manual calculation & software (Excel or SPSS).
9. Answer
PHStat output:
Data
Null Hypothesis m= 20
Level of Significance 0.05
Sample Size 50
Sample Mean 43.04
Sample Standard Deviation 41.92605736

Intermediate Calculations
Standard Error of the Mean 5.929239893
Degrees of Freedom 49
t Test Statistic 3.885826921

Two-Tail Test
Lower Critical Value -2.009575199
Upper Critical Value 2.009575199
p-Value 0.000306263

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BB113 Statistics and Its Application Tutorial 7

Reject the null hypothesis

H 0 : = 20 H 1 : 20

Decision rule: Reject H 0 if tSTAT > 2.0096 d.f. = 49

X - 43.04 - 20
Test statistic: t STAT = = = 3.8858
S/ n 41.9261/ 50

Decision: Since tSTAT > 2.0096, reject H 0 . There is enough evidence to conclude
that the mean number of days is different from 20.

10. In a recent year, the Federal Communications Commission reported that the mean wait for
repairs for Verizon customers was 36.5 hours. In an effort to improve this service, suppose
that a new repair service process was developed. This new process, used for a sample of 100
repairs, resulted in a sample mean of 34.5 hours and a sample standard deviation of 11.7
hours. Is there evidence that the population mean amount is less than 36.5 hours? (Use a
0.05 level of significance.)
10. Answer
H0 : = 36.5 H1 : < 36.5

Decision rule: Reject H 0 if tSTAT < -1.6604

X - 34.5 - 36.5
Test statistic: t STAT = = = -1.7094
S / n 11.7 / 100

Decision: Since tSTAT < -1.6604 , reject H 0 . There is enough evidence to conclude that the
population mean amount is different from 36.5 hours.

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BB113 Statistics and Its Application Tutorial 7

11. (a) If, in a random sample of 400 items, 88 are defective, what is the sample proportion of
defective items?
(b) In 11 (a), if the null hypothesis is that 20% of the items in the population are defective,
what is the value of ZSTAT?
(c) In (a) and (b), suppose you are testing the null hypothesis H0 : = 0.20 against the two-
tail alternative hypothesis H1 : 0.20 and you choose the level of significance =
0.05. What is your statistical decision?
11. Answer
X 88
(a) p = = = 0.22
n 400
p - 0.22 - 0.20
Z STAT = =
(b) 1 - 0.20 0.8 = 1.00
n 400
X - n 88 - 400 0.20
or Z STAT = = = 1.00
n 1 - 400 0.20 0.80

(c) H0: = 0.20

H1: 0.20
Decision rule: If Z < 1.96 or Z > 1.96, reject H0.
p - 0.22 - 0.20
Z STAT = =
Test statistic: 1 - 0.20 0.8 = 1.00
n 400
Decision: Since Z = 1.00 is between the critical bounds of 1.96, do not reject H0.

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