Unit 1: One sample Testing of Hypothesis

Test of hypothesis for single population mean .

1. A manufacturer of ball pens claims that a certain pen he manufactures has a mean writing
life of 400 pages with a standard deviation of 20 pages. A researcher selects a sample
of 100 pens and puts them for tests. The mean writing life for the sample was found to be
390 pages. Test whether the claim made by the manufacturer is correct at 5% level of
significance.
2. 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 the specified value of 375 hours. The
process standard deviation is known to be 100 hours. A random sample of 64 light bulbs
indicates a sample mean of 350 hours.
a.At 0.05 lever of significance, is there evidence that the mean life is different from
375 hours?
3. The director of admission at a Kathmandu university advises of incoming students about
the cost of textbooks during a typical semester. A random sample of 20 students enrolled
in the university indicates a sample average cost of Rs.315 with a sample standard
deviation of Rs.43. Using a 0.05 level of significance is there evidence that the
population average is above Rs.300?
4. A manager of the credit department for an oil company would like to determine whether
the average monthly balance of credit card holders is greater than $75. An auditor selects
a random sample of 25 accounts and finds that the average owed is $ 83.40 with a sample
standard deviation of $ 11.83. Test using a 5% level of significance whether the average
balance is more than $ 75.
5. A manager of the credit department for an oil company would like to determine whether
the average monthly balance of credit card holders is equal to $ 75. An auditor selects a
random sample of 25 accounts and finds that the average owed is $ 83.40 with a sample
standard deviation of $ 11.83. Using a 5% level of significance test whether the average
balance is different from $ 75.
6. A sample of size 400 was drawn and the sample mean was found to be 99. Test whether
this sample could have come from a normal population with mean 100 and variance 64 at
5% level of significance.
7. A sample of 100 tyres is taken from a lot. The mean life of tyres is found to be 39350 km
with a standard deviation of 3260 km. could the sample come from a population with
mean life of 40000 km?
8. A random sample of 100 individuals is draw from a large population of certain city. The
mean height of these 100 individuals is 66 inches. Can it reasonably be regarded as a
sample from the population with mean height 65.5 inches and standard deviation 2.60
inches?
9. The director of manufacturing at a clothing factory needs to determine whether a new
machine is producing a particular type of cloth according to the manufacturer’s
specifications, which indicate that the cloth should have a mean breaking strength of 70
pounds and a standard deviation of 3.5 pounds. A sample of 49 pieces of cloths reveals a
sample mean breaking strength of 69.1 pounds.
a) State null and alternative hypothesis.
b) Is there evidence that the machine is not meeting the manufacturer’s specifications for
average breaking strength? (Use 0.05 level of significance)
c) Compute the p- value and interpret its meaning.
Unit 1: One sample Testing of Hypothesis

10. A 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 wt. of the blocks is normally distributed
with a standard deviation of 0.3 kg. The machine is currently set to cut the block of wt.
12kg. A sample of 9 blocks is found to have an average block of wt. 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?
11. Does an average box of cereal contain more than 368 grams of cereal? A random sample
of 25 boxes showed a sample mean of 372.5 grams. The company has specified  to 15
grams and the distribution to be normal. Test at the œ = 0.05 level.
12. A potential entrepreneur is considering the purchase of a coin – operated laundry. The
present owner claims that over the past five year the average daily revenue has been Rs.
67500 with a standard deviation of Rs. 7500. A random sample of 30 selected days
reveals daily average revenue of Rs. 62500.
a) State null and alternative hypothesis (b) is there evidence that the claim of the present
owner is not valid? (Use a 0.01 level of significance)
13. Given a sample mean of 82, a sample s.d. of 12 and a sample size of 25, test the
hypothesis that the value of the population mean is 70 against the alternative hypothesis
that it is more than 70. Use the 5% significance level.
14. The manager of a paint supply store wants to determine whether the amount of paint
contained in 1 – gallon cans purchased from a nationally known manufacturer actually
average 1 gallon. It is known from the manufacturer’s specifications that the s.d. of the
amount of paint is equal to 0.02gallon. a random sample of 50 cans is selected, and the
mean amount of paint per 1 gallon can is found to be 0.996 gallon. Is there evidence that
the mean amount is different from 1 gallon? (Use œ = 1%)
15. The policy of a particular bank branch is that its ATMs must be stocked with enough cash
to satisfy customers making withdrawals over an entire weekend. Customer goodwill
depends on such services meeting customer needs. At this branch the expected (i.e.
population) mean amount of money withdrawn from ATMs per customer transaction
over the weekend is $ 160 with an expected (i.e. population) standard deviation of $30.
Suppose that a random sample of 36 customer transaction is examined and it is observed
that the sample mean withdrawal is $ 172.
At the 0.05 level of significance, is there evidence to believe that the true mean
withdrawal is greater than $ 160?
16. The policy of a particular bank branch is that its ATMs must be stocked with enough cash
to satisfy customers making withdrawals over an entire weekend. Customer goodwill
depends on such services meeting customer needs. At this branch the expected (i.e.
population) mean amount of money withdrawn from ATMs per customer transaction
over the weekend is $ 1500 with an expected (i.e. population) standard deviation of $300.
Suppose that a random sample of 64 customer transaction is examined and it is observed
that the sample mean withdrawal is $ 1720. At the 0.05 level of significance, using the p-
value approach to hypothesis testing, is there evidence to believe that the true mean
withdrawal is greater than $ 1500?
17. The director of admissions at a large university advises parents of incoming students
about the cost of text books during a typical semester. A sample of 100 students enrolled
in the university indicates a sample mean cost of $ 315.40 with a sample standard
deviation of $ 43.20.Using the 0.10 level of significance, is there evidence that the
population mean is above $ 300.
Unit 1: One sample Testing of Hypothesis

18. The Glen Valley steel company manufactures steel bars. If the production process is
working properly, it turns out steel bars with mean length of at least 2.8 feet with a
standard deviation of 0.20 feet. Longer steel bars can be used or altered, but shorter bars
must be scrapped. A sample of 25 bars is selected from the production line. The sample
indicates a mean length of 2.73 feet. The company wants to determine whether the
production equipment needs to be adjusted. Test at 5% level of significance.
19. A television documentary an over eating claimed that American are about 10 pounds over
weight on average. To test this claim, 18 randomly selected individuals were examined,
their average excess weights were found to be 12.4 pounds and the sample s.d. was 2.7
pounds. At a 1% level of significance, is there any reason to doubt the validity of the
claimed 10 pounds value?
20. An educator claims that the average I.Q. of a city college students is at most 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 level of significance of 0.01
to test the claim of educator.
21. The mean weekly sale of the chocolate bar in candy stores was 146.3 bars per stores.
After an advertising campaign the mean weekly sales in 29 stores per a typical week
increase to 153.7 and showed the standard deviation of 17.2. Was the advertisement
campaign successful?
Unit 1: One sample Testing of Hypothesis

One sample test of hypothesis for population proportion

1. A wholesaler claims that only 4% of the apples buy him are defective. A random sample
of 600 apples contained 36 defective. Test the claim of wholesaler at 1% level of
significance.
2. The controller of examination of certain university claimed that 60% of the students have
passed in the university. An examination is conducted to a random sample of 200
students and it is found that 140 students were passed in the examination. Test whether
the controller’s claim is valid or not at the 5% level of significance.

3. A member of public interest groups concerned with environment pollution asserts at

public hearing that “fewer than 60% of the industrial plants in this area are complying
with air pollution standard “. The officials samples 60 plants and finds that 33 are
complying with air pollution standard. Is the asserting by the member of public interest
group a valid one? Test the hypothesis at the 0.02 significance level.
4. An article in the Wall Street Journal implies that more than half of all Americans would
rather be given $100 than a day off from work. This statement is based on a survey
conducted by American express incentive services, in which 593 of 1040 respondents
indicated that they would rather have the $ 100.
a) At the 0.05 level of significance, is there evidence based on the survey data that more
than half of all Americans would rather have $100 than a day off from work?

5. In 1991 it was believed that 41% of companies had their own ethics codes. In a 1999
survey conducted by conference board, 97 of 124 companies indicated that they have
their own ethics codes. At the 0.01 level of significance, is there evidence that the
proportion has increased from the previous value of 0.41?
6. Is there evidence that less than half of the employed workforce in the United States has
internet access at work? In a survey conducted of 1000 workers by employment. Com. In
august 2000, 440 indicated that they have internet access at work. At the 0.05 level of
significance, is there evidence that in august 2000 fewer than half of the employed
workers in the U.S. had internet access at work?

7. Ketchup Company is in a process of deciding whether to produce a new extra spicy

brand. The company’s marketing research department used the national telephone survey
of 6000 household and found that the extra spicy ketchup would be purchased by 335 of
them. A much more extensive study made two year ago showed that 5% of the household
would purchase the brad then. At 2% significance level, should the company conclude
that there is an increased interest in the extra spicy flavor?
8. A survey conducted by employment consultant Watson Wyatt Worldwide reported that
233 of 295 companies surveyed use their intranet as the chief method of delivering
human resource services to employees. The article also reported that in 1998 it was
believed that 50% of companies delivered these services through their intranets.
a) At the 0.05 level of significance, is there evidence that the proportion has changed from
the previous value of .50
b) Compute the p- value and interpret its meaning.