Buildings in Istanbul Objective ‘The objective of this case-exercise is to demonstrate hypothesis testing for proportions from single population, Sieuation The mayor of Wtanbul, Tuckey, says that 99% of in buildings are built according to the bul codes. A constilting firm in the European Union takes a random sample of 275 buildings andi these determines that 238 are built according to code, Required 1 Expres the hypothesis situation Gr the quenion: “Is there evidence ofa Sierence?™ 2 To the nearest two decimal places, what proportion of the buildings sampled considered not built according to cose? What isthe proportion considered constru 1 code? To the nearest four decimal places what isthe standard error of the proportion of sampling proce To the nearest four decimal places in this sampling process what is the value of the & statistic for the number of buildings considered safe What ate your conclusions ata 5% significance level to tet if here is 4 difference im proportion of buildings in Isanbul constructed according to code Justify your response to Question 5 using the p-value approach. Justify your response to Question 5 by determining the confidence levels at 5% vignifcanadl ‘Express the hypothesis situation forthe question: “Is there evidence thatthe proportion buildings built so code is less than the hypothesized value’ ‘Whatare your conchisions ata 5%significance level testing for evidence tha the propottia coffbuildings buile according to code isless than the hypothesized value? Justify your respon using che aormal z statistic, che p-value and the confidence limit. Answers 1 Nall hypothesis of proportion built to code: H:p = 90%: Alternative hypothesis: Hip 90%. ‘The proportion of buildinigs not buile according vo code is 13.45%. Proportion construct according vo code is 86.55%, ‘The scandard error af the peaporsion of the tampling process is 0.01809. The value of the test statistic for the number of buildings constructed accordi 19096. ‘Ata 5% significance level testing for a difference, there is no evidence to suggest that should not accept the null hypothesis. The critical limits of z are * 1,9600. The sara value of -1,9096 fills inside these limits. ‘Ata 5% significance fevel testing for a difference there is an area of 2.5% in each tail, p-value is 2.8196 and thisis greater than 2.50% and this corroborates our answer to QuestionHypothesis testing for a single population 497 Bidence level ac 56 significance for the testing of a difference are 86.45% and E Since our sample value of 86.35% fills berween these limits this corroborates our fe Question 5. thesis of proportion built to code: Higsp % 90%; Alternative hypothesis: Hy ‘significance level testing for less than, there is evidence to suggest that we should null hypothesis, The critica limit of zis ~1.6449. The sample z value of -1.9096 tse this limit. The p-value is still 2.81% and this is les than the significance level of je confidence limits 87.02% and the sample value of 86.55%6is lower than this value, BF ches confirm the conclusion, fectionery company near Birmingham, England indicates on the label of one format of jocolate bars that the net weight is 100 g. A government weights and measures inspector zhs 4 random sample of chocolate bars from the production line to see if the labeling ation conforms to specifications. The sampling information of the weights of the solate bars in grams is given in Table CB-t Ifyou are asking the question, “Is there evidence of significant difference?” how would the null and alternative hypothesis be expressed? “What is the sample mean value of the weight of chocolate bars? ‘Ata 5% significance, using the test statistic, is there evidence that the weight of chocolate bars is different than 100 g? onfirm the answer to Question 2 using the p-value approach. the limits of the weight of the chocalte bars also confirm your conclesions from Question 2? Tryou now are asking the question, “Is here evidence of the weight being lew chan the labeled weight?” how would the null and alternative hypothesis be expressed?498 Case-exerises Aca 5% significance, using the test statistic, is there evidence that the weight of chocola bars is less than 100 Confirm the ansvver to Question 7 using the p-value approach. . Do the limits ofthe sample weight of the chocolate bars also confirm your conclusions i the answer of Question 7? ‘Why is this type of test important? Answers Nall hypothesis: Hy = 100 g; Alternative hypothesis: Hy 100 g Sample mean weight is 96.8360 grams. There sno evidence ofa difference. The critical Student's value is * 2.0639. The sa test Student's # value is ~2,0094. This lies on the left side of the distribution and f between the critical value and the mean value of the distribution. Ar 2.5% significance for the test ofa difference there is 2.50% in each of the tail ‘p-value is 2.85%, which is greater chan 2.50%, ‘Fhis resule confirms the conclusion ‘Question 2. The lower and upper limits are 96.73 grams and 103.27 g respectively. The sample wei ‘096.8360 grams lies between these limits. This again confirms the answer to Question: [Null hypothesis: Hy = 100 g; Altemative hypothesis: Hy < 100 The critical value of the Student's ¢ is now -1.7109. The sample test value off Seuclent’s tis -1.998. This value is numerically greater than the critical value 50 fo 5% significance there is evidence thatthe weight of the chocolate bars is significant le than the lnbeled amount of 100 grams. 4 ‘At 2 5% significance for the fest of “les than” there is 5.00% in the left-hand tal ‘p-value of the sample test value isis 2.85%, which is less than 5.00%, This result confi the conclusion of Question 7 ‘Ata5% significance for the test of “less than” the lower limit of the weight is 97.29 gram The sample weight of 96.8360 is less than this amount. This again confirms the answer Question 7. If producer is producing significandy less than the labeled 100 grams according ecifications then this is erroneous labeling. If production was significantly more t ‘specifications, it would be costing the producer more than necessary istmas tree lights bjective ‘The objective of this case-exercise is to demonstrate the application of hypothesis resting f small samples from a single population. Situation In March 2 European retailer i Sourcing suppliers for Christmas products for the follow holiday season, It contacts a manufacturing firm of Christmas tree lights in order to see if product would satisfy its retail outlets. The Chinese manufacturer says that the mean life off lights is 120 hours before they fil The retailer, before itnegotiatesa contract for the purchasedHypothesis tectng for a single population 499 tthe weight of choca 6.000 of these lights, wants to verify the manuficturet’s Qaim, evakes trandom sample of 25, gs and tests them until they burn out. The time in hours of these lights before they failed is sain Table CL-L. firm your conclusions 2.0639, The san e distcibution and cite oe Write an expression for the hypothesis test if you are analyzing for a difference. ‘To the nearest two decimal places, whats the sample mean of the time in hours before the eeepc ierrs spl ei Bi inlets eis iactteonce cca encase ase — suggest that the manuficture’s claim is not correct? Quantify your response. i ae of i Ganson onus in ying ep nice ‘Write an expression for the hypothesis test if you arc analyring to see if the mean life of the Chis sagranees emcees as Be ai sy pete Aa EE of et 2 ate alc’ ag az jour acl Ue Asidiow freuen ee te ee 2 leftchand wil. The 9 This result contra a ‘ightis 97.29 grams i ifitms the answer es Answers Tams according «9 Psst = 1 The null hypothesis is: Hse 120 hours. The altemative hypothesis is: Hsp. # 120 hours. icantly more than ‘The sample mean of the time before the Christmas tree lights fal s 116.18 hows. 3 No, there is no evidence at 5% testing for a difference to suggest that the mean life of the lights significandy diferenc than 120 hours. The critical Student’ limits are * 2.0639 and the sample test Student's # of -2,0094 lies within the boundary ofthese critical limits. Accept the null hypothesis 4 The p-value of the sample test experiment is 2.79% and this is greater than 2.50% since in testing fora difference there is 2.50% in each ta This confirms the conclusions to Question 3, 5 Theloweracceptance levelis 116.08 hours and the upperis 123.92 hours. The ssmple mean value of 116.18 hours lies between these boundary levels, 6 The null hypothesis is: Higst & 120 hours. The alternative hypothesis is: Hy:pt < 120 hours. Ata 5% significance there is evidence indicating that the life of ight is less than 120 hours. thesis testing far br the following der to see ifr mean life of irs ‘©The critical Srident’s evalu is~1.7109. The sample Stadent’s value is 2.0094, Thisis below the critical Yimin ‘© The p-value for the sample is 2.79% and this is less than'5%, © The lower acceptance limit is 116.75 hours. The sample value of 116.18 hours is less