TOPIC 6 - HYPOTHESIS TESTING

EXAMPLE

QUESTION 1

A paint manufacturer claims that the average drying time for its new paint is not more than 90 minutes. To test the claim, the drying times are obtained for 50 randomly selected paints. The sample mean and the standard deviation for the sample were found to be 88 minutes and 8 minutes respectively. At 1% level of significance, test the claim made by the manufacturer.

Step 1

: State the null hypothesis and alternative hypothesis

Step 2

: Calculate the test statistics

Step 3

: Determine significance level

One-Tailed Test to The Right

Step 4

: Find the critical value on the test

Refer to Z-score table

2.326

Step 5

: Decide to reject or fail to reject null hypothesis

We fail to reject the null hypothesis which the average time for its new paint is not more than 90 minutes.

Step 6

: Reach conclusion

There is no sufficient sample evidence to fail to reject the claim that the mean drying time for its new paint is 90 minutes.