1.

The college bookstore tells prospective students that the average cost of all textbooks is $52
with a standard deviation of $4.50. A group of smart statistics students thinks that the average cost
is higher. In order to test the bookstore’s claim against their alternative, the students will select a
random sample of size 100. Assume that the mean from their random sample is $52.80. Perform a
hypothesis test at the 5% level of significance and using critical value approach state your decision.

Answer key: right sided test. Critical value of z = 1.65, z stat = 1.78.
Reject null hypothesis at 5% significance level. (draw graph). Based on this test we can not believe
the bookstore’s claim that the mean cost of textbooks is $52.

2. A certain chemical pollutant in the Genesee River has been constant for several years with mean
μ= 34 ppm (parts per million) and population standard deviation σ= 8 ppm. The population
standard deviation is skewed to the left. A group of factory representatives whose companies
discharge liquids into the river is now claiming that they have lowered the average with improved
filtration devices. A group of environmentalists will test to see if this is true at the 4% level of
significance. Assume that their sample of size 50 gives a mean of 32.5 ppm. Perform a hypothesis
test at the 4% level of significance and using critical value approach state your decision.

Answer key: left sided test. Critical value of z = -1.75, z stat = -1.33
Do not reject null hypothesis at 4% significance level. (Draw graph). Based on this test we can not
believe the factories claim that the mean amount of pollutant is less than 34 ppm.

3. A manufacturing process produces Ping-Pong balls with diameters that have a normal
distribution with known population standard deviation of .04 centimeters. Ping-Pong balls with
diameters that are too small or too large are considered defective. The manufacturing company
claims all their Ping-Pong balls have a diameter of exactly = 0.50 centimeters. Perform a
hypothesis test at the 5% level of significance to check if the claim is true. Assume that a random
sample of 25 gave a mean diameter of 0.51 centimeters. Perform a hypothesis test and state your
decision using critical value approach.

Answer key: Two sided test. Critical value of z = ± 1.96. z stat = 1.25. Do not reject null hypothesis
at 5% significance level. (Draw graph). we can believe the claim that the mean diameter is 0.5
centimeters.
4. The manufacturer of a certain brand of auto batteries claims that the mean life of these batteries
is 45 months. A consumer protection agency that wants to check this claim took a random sample
of 24 such batteries and found that the mean life for this sample is 43.05 months. The lives of all
such batteries have a population standard deviation of 4.5 months. Perform a hypothesis test at
10% significance level and state your decision using critical value approach.
Answer key: Can’t be tested using z table as population distribution is not known, so we can’t
assume sampling distribution is normal as n<30. Hence z-table can’t be used.

5. A cereal company claims that mean weight of cereal boxes is at least 16.1 ounces. Suppose that
a plant manager wishes to test whether the true mean weight of cereal boxes is greater than
16.1ounces. Suppose that for this problem the population standard deviation is 0.4 and the
population distribution is normal. The manager obtain a random sample of size 25 and finds a
mean of 16.3 ounces. Using p value approach test the claim of company at significance level at
1%.

Answer key: Right sided test.

Z stat = 2.5
P value (z < 2.5) = 0.0062
α= 0.01. Since α > p value. Reject null hypothesis

6. The production manager of Twin Forks Inc., has asked your assistance in evaluating a
modified box production process. When the process is operating properly, the process produces
boxes whose weights are normally distributed with a population mean of 5 ounces, population
standard deviation of 0.1 ounce and the population distribution is normal. A new raw-material
supplier was used for a recent production run, and the manager wants to know if that change has
resulted in a lowering of the mean weight of the boxes. A random sample of 16 observations are
taken and their average weight was 4.962.
a. Test at 5% significance level to check if the new material has lowered mean weight of boxes
using p-value approach.
b. Test at 10% significance level to check if the new material has lowered mean weight of boxes
using p-value approach.
c. Does you result change when significance level changes. Why?

Answer key: Left sided test.

Z stat = -1.52
P value (z<-1.52) = 0.0643

a) α=0.05 since α < p value. Do not reject null hypothesis

b) α=0.1 since α > p value. Reject null hypothesis

7. Company ABC claims that they produces cans whose diameters are normally distributed with a
population mean of 2 inches and a population standard deviation of 0.06 inch. A customer wants
to check if the mean diameter of the cans is different than 2 inches. He takes a random sample of
nine samples and finds a sample mean of 1.95 inches. Use a significance level of α = 0.07 to
perform a hypothesis test using p value approach.

Answer key: Two sided test

Z stat = -2.5
P value = (2 X 0.0062) = 0.0124
Reject null hypothesis