UNIVERSITY OF THE SOUTHERN CARIBBEAN

MARACAS ROYAL ROAD, MARACAS, ST. JOSEPH.

.

An Assignment
Presented in Partial Fulfillment
of the Requirements for the Course

MGMT:301 Business Statistics

INSTRUCTOR: Alexis-St. Hilaire

By

Zenika Peters

March 26, 2021

Approval…………
MGMT:301 Business Statistics
Practice Quiz 5 – Topic: Hypothesis testing about the mean and proportion- single
population
Available: March 24, 2021 at 8:00pm
Due: March 26, 2021 at 12:00pm (noon)

Question1. (10 marks)

John’s Limited manufactures screws that are used in the manufacture of tables. The table
manufacturers require that the screws must have a length of 150 mm, with a small tolerance
for differences in length.

Resultantly, John’s Ltd randomly sampled and measured the average length of screws for 25
production runs. Due to the fact that the table manufacturers require a small tolerance for
differences in the length of the screws, a 1% significance level for evaluation was chosen.

After measuring the average of the samples and their standard deviation, it was observed that
the sample values was normally distributed about the mean.
Assume John’s Ltd derived the following values from their test:

Mean = 150.12
Standard Deviation = 0.496

Requirements:
Consider the above scenario and conduct a hypothesis test using the 1% significance. In your
answer, include the different steps used to construct a hypothesis test using the critical value
method. See steps below.

•Null and alternative hypotheses

•Level of significance  

•Test statistics

•Critical values and rejection region

•Process of checking to see whether the test statistic falls in the rejection region and
conclusion in words
End!