One Population Mean Test (t test)

Use t-test when: (1) the sample size is less than 30, and population is truly or approximately normally distributed with unknown population standard deviation (), or (2) the sample size is large (n>=30) with unknown population standard deviation (). t-test statistic =
0

, =

, follows t-distribution (a family of distribution -

one for each degree of freedom). The critical value(s) depends on and degree of freedom (n-1). Two-sided Test Example 1: Toyota announced that the average selling price for 2012 4WD basic model of RAV4 in US is $23,000. Sample of 100 transactions in some Southern States indicated a mean selling price of $22,500 with a standard deviation of $2000. Could we conclude that the purchasing cost from the South is significantly different from that in other part of the nation? Test using a significance level of 0.01. [Solution] 1) Formulate the null and alternative hypotheses

2) Select test statistic 3) Specify the level of the test ( ) 4) Identify the critical values for the test statistic and state the decision rule Two-tailed test, split in half to reflect the tail area in t-distribution Find t critical value ____________________ corresponding to df = = Decision rule:

5) Calculate the test statistic value

6) Make the decision

7) State the conclusion in terms of the original question

One Population Mean Test (t test)

One-sided Test (Right-tailed test) Example 2: Disney claims that with the help of Fastpass, the average waiting time for their most popular rides is no more than 35 minutes. Recently a survey to 49 customers showed that the mean waiting time is 36 minutes with a standard deviation of 5 minutes. Does this survey report go against Disneys claim? [Solution] 1) Formulate the null and alternative hypotheses 2) Select test statistic 3) Specify the level of the test ( ) 4) Identify the critical value for the test statistic and state the decision rule Find t critical value ____________________ corresponding to df = = Decision rule:

5) Calculate the test statistic value

6) Make the decision

7) State the conclusion in terms of the original question

One Population Mean Test (t test)

One-sided Test (Left-tailed test) Example 3: Goodyear claims that their high performance tires can last at least 60,000 miles on average. A recent sample of 36 tires was randomly selected for testing. The mean tire life in this sample is 58500 miles with a sample standard deviation of 4000 miles. Does this study indicate that Goodyears tire does not perform as well as they claimed ? Test using a significance level of 0.10. [Solution] 1) Formulate the null and alternative hypotheses 2) Select test statistic 3) Specify the level of the test ( )

4) Identify the critical value for the test statistic and state the decision rule Find t critical value ____________________ corresponding to df = =

Decision rule:

5) Calculate the test statistic value

6) Make the decision

7) State the conclusion in terms of the original question