One Sample Hypothesis Testing Worksheet

1. The mortgage department of a large bank is interested in the nature of loans

of first-time borrowers. This information will be used to tailor their
marketing strategy. They believe that 50% of first-time borrowers take out
smaller loans than other borrowers. They perform a hypothesis test to
determine if the percentage is the same or different from 50%. They
sample 100 first-time borrowers and find 53 of these loans are smaller that
the other borrowers. For the hypothesis test, they choose a 5% level of
significance.

2. On September 16, 2020, a News magazine reported the results of a public

opinion poll that asked: “From everything you know about Trump, does he
have the honesty and integrity you expect in a president?”.

Poll surveyed 518 adults and 233, or 0.45 of them (clearly less than half),
answered yes.

Can you conclude from this that only a minority (less than half) of the
population of Americans thought Trump had the honesty and integrity to be
president?

3. Emergency Service: A major west coast city in USA provides one of the
most comprehensive emergency medical services in the world. Operating in
a multiple hospital system with approximately 20 mobile medical units, the
service goal is to respond to medical emergencies with a mean time of 12
minutes or less. The director of medical services wants to formulate a
hypothesis testing problem to determine whether or not the service goal of
12 minutes or less is being achieved.
(a) Formulate the hypotheses testing problem.
(b) Suppose a random sample of 40 response times are selected from the
records and the sample mean was found to be 13.25 minutes and sample
standard deviation was 3.2 minutes. Carry out the test at 5% level of
significance by finding the p-value. State the assumptions you made.
(c) Find an appropriate two-sided confidence interval and carry out the test
at 5% level of significance.

4. Toothpaste Manufacturing: The production line for Glow toothpaste is

designed to fill tubes of toothpaste with a mean weight of 6 ounces.
Periodically, a sample of 30 tubes will be selected in order to check the
 filling process. Quality assurance procedures call for the continuation of the
filling process if the sample results are consistent with the assumption that
the mean filling weight for the population of toothpaste tubes is 6 ounces;
otherwise the filling process will be stopped and adjusted.
(a) Formulate a hypothesis testing problem to help determine when the
filling process should continue operating, and when it should be stopped
and corrected.
(b) Assume that a sample of 30 toothpaste tubes provides a sample mean of
6.1 ounces and standard deviation of 0.2 ounces. Based on the information,
carry out a test for the hypotheses testing problem that you formulated.
Also find the p-value.
(c) Find an appropriate two-sided confidence interval of the mean and then
carry out the same test.

5. Catching Speeding Cars: To control speeding on the highway, the state

highway authority decides to draw samples of vehicle speeds at a few
selected locations on the highway. The speed limit is 65 mph. Based on the
sample from each location, the hypothesis H0: μ ≤ 65 is to be tested. The
locations where H0 is rejected are to be selected for putting speedometer.
Suppose at Location F, a sample of 16 vehicles shows a mean speed of 68.2
mph with a standard deviation of 3.8 mph.
(a) Carry out the test of hypothesis at 5% level of significance stating
clearly the assumptions you make.
(b) Find an appropriate two-sided confidence interval and carry out the test
at 1% level of significance.

6. Paint Research: The drying time of a certain type of paint under specified
test conditions is known to be normally distributed with mean value 75 min
and standard deviation 9 min. Chemists have developed a new additive
designed to decrease average drying time. It is believed that drying time
with this additive will remain normally distributed with SD σ = 9. It is
desirable that the evidence should strongly suggest an improvement in
average drying time before such a conclusion is adopted.
(a) Formulate a hypothesis testing problem with proper reasons.
(b) Experimental data consists of n = 25 specimens and sample mean is 73
min. Carry out the test of hypotheses at 5% as well as 1% level of
significance.
(c) Find the p-value and hence draw your conclusion.
(d) Find an appropriate two-sided confidence interval to carry out the test.