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center that the average income per household in the area is $25,000. Suppose that for the type

of area involved household income can be assumed to be approximately normally distributed

and that the standard deviation can be accepted as being equal to 2,000, based on an earlier

study. For a random sample of n = 15 household, the mean household income is found to be

x = $24,000.

(a) Test the null hypothesis that = $25,000 by establishing critical limits of the

sample mean in terms of dollars, using the 5 percent level of significance.

(b) Test the hypothesis by using the standard normal variable z as the test statistic.

2. The standard deviation of the tube life for a particular brand of ultraviolet tube is known to be

500 hr, and the operating life of the tubes is normally distributed. The manufacturer claims

that average tube life is at least 9,000 hr. Test this claim at the 5 percent level of significance

by designating it as the null hypothesis and given that for a sample of n = 15 tubes the mean

operating life was x = 8,800 hr.

3. For a sample of 50 firms taken from a particular industry the mean number of employees per

firm is 420.4 with a sample standard deviation of 55.7. There are a total of 380 firms in this

industry. Before the data were collected, it was hypothesized that the mean number of

employees per firm in this industry does not exceed 408 employees. Test this hypothesis at the

5 percent level of significance.

4. As a commercial buyer for a private supermarket brand, suppose that a random sample of 12

No. 303 cans of string beans at a canning plant. The average weight of the drained beans in

each can is found to be x = 15.97 g, with s = 0.15. The claimed minimum average net

weight of the drained beans per can is 16.0 g. Can this claim be rejected at the 10 percent

level of significance?

5. An automatic soft ice cream dispenser has been set to dispense 4.00 g per serving. For a

sample of n = 10 servings, the average amount of ice cream is x = 4.05 g with standard

deviation = 0.10 g. The amount being dispensed are assumed to be normally distributed.

Basing the null hypothesis on the assumption that the process is in control, should the

dispenser be reset as a result of a test at the 10 percent level of significance?

6. It is hypothesized that no more than 5 percent of the parts being produced in a manufacturing

process are defective. For a random sample of n = 100 parts, 10 are found to be defective.

Test the null hypothesis at the 5 % level of significance.

7. A salesman claims that on the average he obtains orders from at least 30 percent of his

prospects. From a random sample of 100 prospects he is able to obtain 20 orders. Can his

claim be rejected at the (a) 5 % and (b) 1 % level of significance?

8. The sponsor of a television special expected that at least 40 percent of the viewing audience

would watch the show in a particular metropolitan area. For a random sample of 100

households with television sets turned on, 30 are viewing the special. Can the sponsors

assumption that at least 40 percent of the households would watch the program be rejected at

the (a) 10 percent and (b) 5 percent level of significance?

9. The director of a college placement office claims that at least 50 percent of the graduating

seniors had finalized job arrangement by March 1. Suppose a random sample of n = 30

seniors are polled, and only 10 of the students indicate that they have concluded their job

arrangements by March 1. Can the placement directors claim be rejected at the 5 percent

level of significance?

CT042-3-2-PASM Exercise Hypothesis Testing

10. The table below shows the number of employees absent for a single day during a particular

period of time.

Monday 121

Tuesday 87

Wednesday 87

Thursday 91

Friday 114

Total 500

(a) Find the frequencies expected under the hypothesis that the number of absentees is

independent of the day of the week.

(b) Test at the 5% level whether the difference in the observed and expected data are

significant.

11. 300 employees of a company were selected at random and asked whether they were in favour

of a scheme to introduce flexible working hours. The following table shows the opinion and

the departments of the employees.

OPINION

Department In favour Uncertain Against

Production 89 42 9

Sales 53 36 11

Administration 38 12 10

Test whether there is evidence of a significant association between opinion and department at

5% significance level.

12. A survey was carried out in a firm of the smoking habits of men and women employees with

the following results:

Men Women

Smokers 48 27

Non-smokers 58 57

It is required to test whether, at the 5% level of significance, the survey reveals any difference

in the smoking habits of men and women.

13. A random sample of employees of a large company was selected and the employees were

asked to complete a questionnaire. One question asked whether the employees were in favour

of the introduction of flexible working hours. The following table classifies the employees by

their response and gender i.e. male or female.

RESPONSE Gender

Male Female

In favour 57 83

Not in favour 33 27

Test whether there is evidence of a significant association between the response and gender.

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