Module 6 – Class Exercise - Part B

Test the hypothesis for the below three questions:

1. The inspection division of the XYZ bottling company suspects that not sufficient amount of soft drink
has been placed in 2-liter bottles. A random sample of 100 bottles obtained from the bottling plant
indicates a sample mean of 1.99 litres and a standard deviation of 0.05. ( α=0 . 05 ) . Test the claim
of the inspection division.

n = 100
X’ = 1.99
s = 0.05
u=2
S1: As n = 100 > 30, CLT is applicable and thus the sample is normally distributed
S2: H0 u >= 2
H1 u < 2 (claim)
S3: Lower tail
S4: t table (o is unknown)
S5: CV = -1.66
S6 t = X’ – u/ s/[n = 1.99 – 2/0.05/[100 = -2
S7: As the test statistic falls in the rejection region hence we reject H0
S8: As we reject H0 hence with a 95% level of confidence we can say that not a sufficient amount
of soft drink has been placed in 2-litter bottles.
S9: As we reject H0 we may have committed Type 1 error. P(type 1) = 5%. We say that not
sufficient amount of soft drinks has been placed in the bottles, while actually there might be
sufficient amount of soft drinks placed in 2-litter bottles.

2. The director of a manufacturing at a clothing factory needs to determine whether a new machine is
producing a particular type of cloth according to the manufacturer’s specifications, which indicate
that the cloth should have at least a mean breaking strength of 70 pounds. The purchase manager
thinks the new machine can’t meet this requirement. A sample of 16 pieces of clothes reveals a
sample mean of 69.1 pounds and a standard deviation of 3.5 pounds. ( α=0 .01 ) . Test the claim of
the purchase manager.
n = 16
X’ = 69.1
S = 3.5
u = 70
CL = 99%

S1: As n = 16 < 30, CLT is not applicable and thus we assume that the population is normally
distributed and thus the sample mean distribution is normally distributed
S2: H0 u >= 70
H1 u < 70 (claim)
S3: Lower tail
S4: t table (population standard is unknown)
S5: df = 15, a = 0,01, CV = -2.6
S6 t = X’ – u/ o/[n = 69.1 – 70/3.5/[16 = -1.028
S7: As the test statistic does not fall in the rejection region hence we do not reject H0
S8: As we do reject H0 hence with 99% level of confidence we can say that the new machine can
produce a particular type of cloth have at least a mean breaking strength of 70 pounds.
S9: As we do not reject H0 we may have committed type 2 error. We say that, while actually the
new machine might not produce a particular type of cloth have at least a mean breaking strength of 70
pounds.
,

3. The average monthly balance of credit card holders is $75. A manager of the credit department for
an oil company feels that there is a significant drop in average monthly balance of credit card
holders due to the recent economic recession. An auditor selects a random sample of 25 accounts
and finds that the average owed is $63.40 with a sample standard deviation of $18.65. ( α=0 .1 )

Normal Distribution (Z) online calculator

http://onlinestatbook.com/2/calculators/normal_dist.html

Inverse Normal Distribution online calculator

http://onlinestatbook.com/2/calculators/inverse_normal_dist.html
 Online Calculator for t-distribution

https://goodcalculators.com/student-t-value-calculator/