Problem Sheet III

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1. A particular item is delivered in lots of 10000 pieces by a company to the
retailers. The retailers have agreed to accept a lot with a maximum of 5%
defective items. In case the percentage defective (π) in the lot is higher than 5%,
the retailer sends back the entire lot to the company. To test whether a lot confirms
to specification, the company has decided to use a sampling inspection plan as
follows. A random sample of items is drawn from a lot and the number of
defectives in the sample is counted. If the number of defectives in the sample
exceeds some pre-assigned number the lot is not sent to any retailer. Determine
the approximate number of items to be accepted as well as maximum number of
defectives in the sample up-to which a lot remains acceptable so that the
probability of type I error is 0.05, and the probability of type II error when π =
0.10 is also 0.05.
[n = 291; c = 21]

2. The proportion of adults living in a small town who are college graduates is
estimated to be 0.3 (= π). To test this hypothesis a random sample of 15 adults is
selected. If the number of college graduates in the sample is anywhere from 2 to
7, the null hypothesis π = 0.3 is accepted; otherwise it is concluded that π ≠ 0.3.
Evaluate size of type I error. Also calculate size if type II error for the alternatives
π = 0.2 and π = 0.4.
[α = 0.0853; β = 0.8287, 0.7817]

3. The proportion of families buying milk from company ‘A’ in a certain city is
believed to be 0.6 (= π). If a random sample of 10 families shows that 3 or less
buy milk from company ‘A’, the hypothesis π = 0.6 is rejected in favour of
alternative π < 0.6. Calculate the probability of committing a type I error.
Calculate the probability of committing a type II error for the alternatives π = 0.3,
π = 0.4, and π = 0.5.
[α = 0.0548; β = 0.3504, 0.8281]

4. A new cure has been developed for a certain type of cement that results in a
compressive strength of 5000 kilograms per square centimeter and a standard
deviation of 120. To test the hypothesis that μ = 5000 against the alternative that μ
< 5000, a random sample of 50 pieces of cement are tested. The critical region is
defined to be x  4970 . Calculate the probability of committing a type I error.
Evaluate β for the alternatives μ = 4970 and μ = 4960.
[α = 0.03836; β = 0.5, 0.2776]

5. The government claims that about 25% of the rural population in the state is
below the poverty line. In order to counter the government’s claim the main
opposition party conducts a quick survey of 1000 rural people and finds that 275
of them are below the poverty line. Can the opposition conclude at 5 % level of
significance that the government’s claim is false? What is the probability that the

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 above survey accepts the government’s claim while in reality 30% of the rural
population is below the poverty line?
[Claim made by government is rejected; β = 0.02872]

6. In a large experiment to determine the success of a new drug, 400 patients with a
certain disease are to be given the drug. If more than 300 but less than 340
patients are cured, it is concluded that the drug is 80 % effective. Calculate the
probability of concluding that drug is not 80% effective while in reality it is
effective. What is the probability of committing type II error if the new drug is
only 70% effective?
[ 0.01468; β = 0.01266]

7. A quality characteristic of interest foe a tea-bag-filling process is the weight of the

tea in the individual bags. If the bags are under filled, two problems arise. First,
customers may not be able to brew the tea to be so strong as they wish. Second,
the company may be in violation of the truth-in-labeling laws. For this product,
the label weight on the package indicates that, on an average, there are 5.5 grams
of tea in a bag. If the mean amount of tea in a bag exceeds the label weight, the
company is giving away product. Getting an exact amount of tea in a bag is
problematic because of variation in the temperature and humidity inside the
factory, differences in the density of the tea, and extremely fast filling operation of
the machine (approximately 170 bags per minute). The data given below provide
the weight, in grams, of a sample of 50 tea bags produced in one hour by a single
machine:

5.65 5.44 5.42 5.40 5.53 5.34 5.54 5.45 5.52 5.41
5.57 5.40 5.53 5.54 5.55 5.62 5.56 5.46 5.44 5.51
5.47 5.40 5.47 5.61 5.53 5.32 5.67 5.29 5.49 5.55
5.77 5.57 5.42 5.58 5.58 5.50 5.32 5.50 5.53 5.58
5.61 5.45 5.44 5.25 5.56 5.63 5.50 5.57 5.67 5.36

From this sample data, the management of the company is interested to ascertain
that mean weight of a tea bag is 5.5 grams. What decision rule should the analyst
adopt if the company is willing to take 1% risk of committing an error by
concluding that mean weight of a tea bag is different from 5.5 grams whereas
actually it is 5.5 grams?
[Reject H0: μ = 5.5 if x < 5.462 or x >5.538]

8. The national proportion of Indians who drink milk as the primary beverage for
breakfast is supposed to be 0.10. A milk producer in Anand, Gujarat, where milk
is plentiful believes that this proportion is higher for Anand. To test her belief she
selected a random sample of 400 residents of Anand and decides to conclude that
more than 10% residents of Anand drink milk in breakfast if the sample
proportion is greater than 0.125. By adopting this decision criterion how much
risk she is taking in terms of committing type I error?
[α = 0.04746]

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9. A soft drink manufacturer is to decide about launching a new variety of soft drink.
On the basis of his past experience, he believed that 80% of the customers were in
favour of the new product. In order to decide about the launching of the new
product, the manufacturer collects the opinion of 400 customers selected by
means of random sampling scheme. He further frames the decision rule of
rejecting the hypothesis of π = 0.8 in favour of the alternative hypothesis π < 0.8
if 308 or less number of customers favour the new product. Thus, the new product
would not be launched if on the basis of sample it is concluded that π < 0.8.
Calculate the probability of committing type I error if 80% of the customers
actually favoured the new product. Also compute the probability of launching the
new product when actually π = 0.73.
[α = 0.07493; β = 0.03144]

9. Let X be N(μ, σ2=100). To test H0: μ = 60 against H1: μ > 60, use a rejection
region of the form x  c. Determine the approximate sample size as well as the
value of ‘c’ so that the probability of committing type I error is 0.05 and the
probability of committing type II error when μ = 65 is also 0.05.
[n = 44; c = 62.5]

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