Name: Khecy Mae B.

Palioto BSIT 1 June 24,2021

Instructions: Solve the following problems. Show all solutions.

1. A manufacturer of bicycle tires has developed a new design which he claims has an average
lifespan of 5 years. A random sample of 150 tires showed a mean of 3.5 years with a standard
deviation of 1.2 years. Test the claim at 5% level of significance
Solution:
𝑛 = 150 𝑥̅ = 3.5 𝑦𝑒𝑎𝑟𝑠
𝜎 = 𝑠 = 1.2 𝑦𝑒𝑎𝑟𝑠
Claim: 𝜇 = 5 𝑦𝑒𝑎𝑟𝑠 (It corresponds to H0)
Step 1: Formulate Hypotheses
H0: 𝜇 = 5 𝑦𝑒𝑎𝑟𝑠 H1: 𝜇 ≠ 5 𝑦𝑒𝑎𝑟𝑠

Step 2: Significance Level

𝛼 = 0.05

Step 3: Critical Region

Use the z – test (two-tailed) z < -1.96 and z > 1.96

Step 4: Computations
𝒛 = (𝒙 ̅−𝝁𝟎)√𝒏 𝝈
𝒛 = (𝟑.𝟓−𝟓)√𝟏𝟓𝟎 𝟏.𝟐
= ±𝟏𝟓.𝟑𝟏

Step 5: Decision
Reject H0
Step 6: Conclusion
There is a sufficient evidence to warrant rejection of the claim that the average lifespan of the new
design is 5 years.
2. A company which makes toy cars claims that its products have a mean life span of more than 5
years. Test the claim at 5% level of significance if a random sample of 28 toy cars was found to
have a mean life span of 5.2 years with a standard deviation of 1.5 years.

Solution:
𝑛 = 28 𝑥̅ = 5 𝑦𝑒𝑎𝑟𝑠
𝑠 = 1.5 𝑦𝑒𝑎𝑟𝑠
Claim: 𝜇 > 5 𝑦𝑒𝑎𝑟𝑠 (It does not correspond to H0)

Step 1: Formulate Hypotheses

H0: 𝜇 ≤ 5 𝑦𝑒𝑎𝑟𝑠 H1: 𝜇 > 5 𝑦𝑒𝑎𝑟𝑠

Step 2: Significance Level

𝛼 = 0.05

Step 3: Critical Region

Use the t – test v = n-1 = 28-1 = 27 𝑡 > 𝑡𝛼 → 𝑡 > 1.703

Step 4: Computations
𝒕 = (𝒙 ̅−𝝁𝟎)√𝒏 𝒔
𝒕 = (𝟓−𝟓.𝟐)√𝟐𝟖 𝟏.𝟓
= −𝟎.𝟕𝟎𝟔

Step 5: Decision
Do not reject H0

Step 6: Conclusion
There is no sufficient evidence to support the claim that its products lifespan is more than 5 years.