Problem # 1 1

Thespecimenofcopperwiresdrawnformalarge
lothavethefollowingbreakingstrength(inkg.
weight):578,572,570,568,572,578,570,572,
596,544Test(usingStudentststatistic)whether
themeanbreakingstrengthofthelotmaybetaken
tobe578kg.weight(Testat5percentlevelof
significance).

20-Mar-17
 Problem # 2 2
Sample of 400 male students is found to have a
mean height 67.47 inches. Can it be reasonably
regarded as a sample from a large population with
mean height 67.39 inches and standard deviation
1.30inches?Testat5%levelofsignificance.

20-Mar-17
 Problem # 3 3
Suppose we are interested in a population of 20 industrial
unitsofthesamesize,allofwhichareexperiencingexcessive
labour turnover problems. The past records show that the
mean of the distribution of annual turnover is 320
employees, with a standard deviation of 75 employees. A
sampleof5oftheseindustrialunitsistakenatrandomwhich
gives a mean of annual turnover as 300 employees. Is the
sample mean consistent with the population mean? Test at
5%level.

20-Mar-17
 Problem # 4 4
The mean of a certain production process is known to
be 50 with a standard deviation of 2.5. The production
manager may welcome any change is mean value
towardshighersidebutwouldliketosafeguardagainst
decreasing values of mean. He takes a sample of 12
items that gives a mean value of 48.5. What inference
shouldthemanagertakefortheproductionprocesson
the basis of sample results? Use 5 per cent level of
significanceforthepurpose.

20-Mar-17
 Problem # 5 5
Themeanproduceofwheatofasampleof100fieldsin
200lbs.peracrewithastandarddeviationof10lbs.
Anothersamplesof150fieldsgivesthemeanof220lbs.
withastandarddeviationof12lbs.Canthetwosamples
beconsideredtohavebeentakenfromthesame
populationwhosestandarddeviationis11lbs?Use5
percentlevelofsignificance.

20-Mar-17
 Problem # 6 6
A manufacturer considers his production process to be
working properly if the mean length of the rods the
manufacturesis8.5".Thestandarddeviationoftherods
alwaysrunsabout0.26".Supposeasampleof64rodsis
takenandthisgivesameanlengthofrodsequalto8.6".
What are the null and alternative hypotheses for this
problem? Can you infer at 5% level of significance that
theprocessisworkingproperly?

20-Mar-17
 Problem # 7 7
A large corporation uses thousands of light bulbs every year. The
brandthathasbeenusedinthepasthasanaveragelifeof1000
hours with a standard deviation of 100 hours. A new brand is
offered to the corporation at a price far lower than one they are
payingfortheoldbrand.Itisdecidedthattheywillswitchtothe
newbrandunlessitisprovedwithalevelofsignificanceof5%that
the new brand has smaller average life than the old brand. A
random sample of 100 new brand bulbs is tested yielding an
observedsamplemeanof985hours.Assumingthatthestandard
deviationofthenewbrandisthesameasthatoftheoldbrand,
(a)Whatconclusionshouldbedrawnandwhatdecisionshouldbe
made?
(b)Whatistheprobabilityofacceptingthenewbrandifithasthe
meanlifeof950hours?

20-Mar-17
 Problem # 8 8
Ten students are selected at random from a school and their
heightsarefoundtobe,ininches,50,52,52,53,55,56,57,58,58
and59.Inthelightofthesedata,discussthesuggestionthatthe
mean height of the students of the school is 54 inches. You may
use5%levelofsignificance(ApplyttestaswellasAtest).

20-Mar-17
 Problem # 9 9
Aproductionlineoperationisdesignedtofillcartonswithlaundry
detergenttoameanweightof32ounces.Asampleofcartonsis
periodically selected and weighed to determine whether
underfillingoroverfillingisoccurring.Ifthesampledataleadtoa
conclusionofunderfillingoroverfilling,theproductionlinewillbe
shutdownandadjustedtoobtainproperfilling.
a. Formulatethenullandalternativehypothesesthatwillhelpin
decidingwhethertoshutdownandadjusttheproductionline.
b. CommentontheconclusionandthedecisionwhenH0cannot
berejected.
c. CommentontheconclusionandthedecisionwhenH0canbe
rejected.

20-Mar-17
 Problem # 10 10
The manager of the DanversHilton Resort Hotel stated that the
mean guest bill for a weekend is $600 or less. A member of the
hotels accounting staff noticed that the total charges for guest
bills have been increasing in recent months. The accountant will
useasampleofweekendguestbillstotestthemanagersclaim.
a. Which form of the hypotheses should be used to test the
managersclaim?Explain.

b. What conclusion is appropriate when H0 cannot be

rejected?
c. What conclusion is appropriate when H0 can be
rejected?
20-Mar-17
 Problem # 11 11
The manager of an automobile dealership is considering a new
bonusplandesignedtoincreasesalesvolume.Currently,themean
salesvolumeis14automobilespermonth.Themanagerwantsto
conduct a research study to see whether the new bonus plan
increases sales volume. To collect data on the plan, a sample of
salespersonnelwillbeallowedtosellunderthenewbonusplan
foraonemonthperiod.
a.Developthenullandalternativehypothesesmostappropriate
forthissituation.
b.CommentontheconclusionwhenH0cannotberejected.
c.CommentontheconclusionwhenH0canberejected.

20-Mar-17
 Problem # 12 12
Aproductionlineoperationisdesignedtofillcartonswithlaundry
detergenttoameanweightof32ounces.Asampleofcartonsis
periodically selected and weighed to determine whether
underfillingoroverfillingisoccurring.Ifthesampledataleadtoa
conclusionofunderfillingoroverfilling,theproductionlinewillbe
shutdownandadjustedtoobtainproperfilling.
a.Formulatethenullandalternativehypothesesthatwillhelpin
decidingwhethertoshutdownandadjusttheproductionline.
b.CommentontheconclusionandthedecisionwhenH0cannot
berejected.
c.CommentontheconclusionandthedecisionwhenH0canbe
rejected.

20-Mar-17
 Problem # 13 13
Becauseofhighproductionchangeovertimeandcosts,adirector
of manufacturing must convince management that a proposed
manufacturingmethodreducescostsbeforethenewmethodcan
beimplemented.Thecurrentproductionmethodoperateswitha
mean cost of $220 per hour. A research study will measure the
costofthenewmethodoverasampleproductionperiod.
a.Developthenullandalternativehypothesesmostappropriate
forthisstudy.
b.CommentontheconclusionwhenH0cannotberejected.
c.CommentontheconclusionwhenH0canberejected.

20-Mar-17
 Problem # 14 14
The label on a 3quart container of orange juice states that the
orangejuicecontainsanaverageof1gramoffatorless.Answer
thefollowingquestionsforahypothesistestthatcouldbeusedto
testtheclaimonthelabel.
a. Developtheappropriatenullandalternativehypotheses.
b. WhatistheTypeIerrorinthissituation?Whatarethe
consequencesofmakingthiserror?
c. WhatistheTypeIIerrorinthissituation?Whatarethe
consequencesofmakingthiserror?

20-Mar-17
 Problem # 15 15
Suppose a new production method will be implemented if a
hypothesis test supports the conclusion that the new method
reducesthemeanoperatingcostperhour.
a. State the appropriate null and alternative hypotheses if the
meancostforthecurrentproductionmethodis$220perhour.
b. What is the Type I error in this situation? What are the
consequencesofmakingthiserror?
c. What is the Type II error in this situation? What are the
consequencesofmakingthiserror?

20-Mar-17
 Problem # 16 16
Considerthefollowinghypothesistest:
Ho:25andHa:>25
Asampleof40providedasamplemeanof26.4.Thepopulation
standarddeviationis6.
a.Computethevalueoftheteststatistic.
b.Whatisthepvalue?
c.At0.01,whatisyourconclusion?
d.Whatistherejectionruleusingthecriticalvalue?Whatisyour
conclusion?

20-Mar-17
 Problem # 17 17
Considerthefollowinghypothesistest:
Ho:=15andHa:15
Asampleof50providedasamplemeanof14.15.Thepopulation
standarddeviationis3.
a.Computethevalueoftheteststatistic.
b.Whatisthepvalue?
c.At=0.05,whatisyourconclusion?
d.Whatistherejectionruleusingthecriticalvalue?Whatisyour
conclusion?

20-Mar-17
 Problem # 18 18
Considerthefollowinghypothesistest:
Ho:80andHa:<25

Asampleof100isusedandthepopulationstandarddeviationis
12.Computethepvalue
andstateyourconclusionforeachofthefollowingsampleresults.
Use=0.01.
a. =78.5
b. =77
c. =75.5
d. =81

20-Mar-17