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Hypothesis Testing II

Testing Hypothesis Test of Significance of Mean for Large Sample (T). Examples: 1.: Assumes that the average annual income for govt. employee in the nations is reported by the census bureau to be Rs. 18750. There was some doubt whether the average yearly income of govt. employee in Pune was r

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Hypothesis Testing II

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    1. Hypothesis Testing II

    2. Testing Hypothesis Test of Significance of Mean for Large Sample (T) Examples: 1.: Assumes that the average annual income for govt. employee in the nations is reported by the census bureau to be Rs. 18750. There was some doubt whether the average yearly income of govt. employee in Pune was representative of the national wage level. A random sample of 100 govt. employee in Pune was taken and found that their average salary was Rs. 19240 with standard deviation of Rs. 2610. At the ? = 0.05 level of significance can we conclude that the average salary of govt. employee in Pune is representative of the national wage level. ( Standard value of z = 1.96)

    3. Testing Hypothesis Test of Significance of Mean for Large Sample (T) Examples:2.: A sample of 400 male students is found to have a mean height 67.47 inches. Can it be reasonably regarded as a sample drawn from large population with mean height 67.39 inches and standard deviation (S.D.)1.30 inches? Test at a 5% level of significance. ( Standard value of z = 1.96)

    4. Testing Hypothesis Test of Significance of Mean for Large Sample (L) Examples: 3. The manufacturer of light bulbs claims that minimum average life of this bulbs is 1600 hours. We want to test his claim. A sample of 100 light bulbs was taken at random and the average bulbs life of this sample was computed to be 1570 hours with standard deviation of 120 hours. At ? = 0.01, let us use test the validity of the claim of this manufacturer. ( Standard value of z = - 2.33)

    5. Testing Hypothesis Test of Significance of Mean for Large Sample Examples:4. An insurance company claims that it takes 14 days on an average to process an auto accident claim with S.D. of 6 days. To test the validity of this claim. An investigator randomly selected 36 people who recently field claims. This sample reveled that it took the company an average of 16 days to process these claims. At 99% confidence check if it takes the company more than 14 days on an average to process a claim. ( Standard value of z = 2.33)

    6. Testing Hypothesis Test of Significance of Mean for Small Sample (T) Examples:5. A gas station repair shop claims that it can do a lubrication job and oil change in 30 minutes . The consumer protection department wants to test this claim, a sample of 6 cars were sent to the station for oil change and lubrication . The job took an average of 34 minutes with SD of 4 minutes . This claim is to be tested at ? = 0.05. ( Standard value of t = 2.02)

    7. t - distribution

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