Question 1:

If you use a 0.05 level of significance in a (two-tail) hypothesis test, what will
you decide if ZSTAT = -0.76?

Solution:

α =0.05
Two tail tests:

Z state=−0.76
P−value=2. P [ Z state ←0.76 ]=2 ( 0.2236 ) =0.472
P−value>α ( 0.05 )
Accept the Null Hypothesis

Question 2:
If you use a 0.10 level of significance in a (one-tail) hypothesis test, what is your
decision rule for rejecting a null hypothesis that the population mean is less than
equal to 500 if you use the Z test?
Solution:

H 0=μ> 500
H 1=μ ≤ 500
Zα
2 =±1.645 ¿
¿
Reject Null Hypothesis if Z-score (test statistic) is outside ± 1.645
Question 3:

The quality-control manager at a light bulb factory needs to determine whether the mean life of
a large shipment of light bulbs is equal to 375 hours. The population standard deviation is 100
hours. A random sample of 64 light bulbs indicates a sample mean life of 350 hours.
a) At the 0.05 level of significance, is there evidence that the mean life is different from 375
hours?
b) Compute the p-value and interpret its meaning.
c) Construct a 95% confidence interval estimate of the population mean life of the light
bulbs.
d) Compare the results of (a) and (c). What conclusions do you reach?

Solution:

Step 1:

State the Hypotheses

Null Hypothesis:
H 0 :μ=375
That is, there is no evidence that the mean lie is different from 375 hours.
Alternative Hypothesis
H 0 :μ ≠ 375
That is, there is evidence that the mean life is different from 375 hours.

From the information, n=6 , μ=375 , x́=350 , σ=100

The test statistic is obtained as shown below:

x́ −μ
Z=
σ
√n
350−375
Z=
100
√ 64
−375
Z=
12.5
Z=−2.00

if -1.96 ≤ z ≤ 1.96, then we accept Ho .

So -2 < 1.96, so we accept Ho.
Step 2:

The p-value for the two tailed test is, 2 P ( Z ≤ z )=2 × P(Z ≤−2.00)
The area to the left of Z=−2.00 is 0.002275

2 P ( Z ≤ z )=2 ×0.002275
¿ 0.0455
The P value is 0.0455.
Explanation:
The P-values is obtained by finding the test statistic. And then the probability area that is left to
the test statistic obtained and then multiplied by 2.

For the given context, the P-value is 0.055

Interpretation:
There is evidence that the mean life is different form 375 hours.
Explanation:
There is evidence that the mean life is different form 375 hours is 0.0455.

Step 3:
Instructions to find 95% confidence interval estimate of the population mean life of 350 hours.
1: Choose Stat > Basic Statistics > 1-Sample Z.
2: In Summarized data, enter the sample size and mean.
3: In Standard deviation, enter a value for s.
4: In Perform hypothesis test, enter the test mean .
5: Click OK.
Follow the above Instructions to get the 95% confidence interval below:

Test of mu =375 vs not =375

The assumed standard deviation = 100

N Mean SE Mean 95% CI Z P

64 350.0 12.5 (325.5,375.5) -2.00 0.046

Part B:
The 95% confidence interval estimate of the population mean of life of the light bulbs is (325.5,
374.5)
Explanation:
There is 95% confident that the population mean of life of the light bulbs is less between 325.5
and 374.5

The critical value is obtained as shown below:

Consider, the confidence level is 0.95.

For (1−α )=0.95

α =0.05
α
=0.025
2

From standard normal table, the required Z 0.025 value for 95% confidence level is ± 1.96 .
The test statistic is -2.00 and the critical value is -1.96. the test statistic is lesser than the critical
value. that is, Z ( ¿−2.00 ) <−Z 0.025(=-1.96). therefore, the null hypothesis is rejected at 5% level.
This signifies that the mean life is different from 375 hours.
Hence,
There is evidence that the mean life is different from 375 hours.
Explanation:
Since Z ( ¿−2.00 ) <−Z 0.025(=-1.96), the null hypothesis is rejected. So, there will be evidence to
support the claim their evidence that the mean life is different from 375 hours.

Step 4:
Conclusion:
The test Statistic value is -2.00 and the critical value is ± 1.96.
That is, 2.00> Z Crit ( 1.96 )∧−2.00 ≥ Z crit (−1.96)
By the rejection rule, the test statistic falls in the rejection region. That is, the null hypothesis is
rejected. Therefore, it can be concluded that the mean life is different from 375 hours.

Hence
Reject the null hypothesis. The mean life is different from 375 hours.
Explanation
The conclusion is stated based on the critical value and the test statistic value using rejection
rule. If the rest statistic value is greater than or equal to the critical value then the null hypothesis
is rejected otherwise not. In this situation the test statistic value is greater than are equal to the
critical and thus the null hypothesis is rejected.

Part 1 A1: The P-value is 0.0455

Part 1 A2: there is evidence that the mean lie is different from 375 hours.
Part 2: the 95% confidence interval estimate of the population mean of life of the light
bulbs is (325.5,374.5).
Part C: there is evidence that the mean life is different from 375 hours.
Part D: Reject the null hypothesis. The mean lie is different from 375 hours.
Question 4:

You are the manager of a restaurant for a fast-food franchise. Last month, the mean waiting time
at the drive-through window for branches in your geographical region, as measured from the
time a customer
places an order until the time the customer receives the order, was 3.7 minutes. You select a
random sample of 64 orders. The sample mean waiting time is 3.57 minutes, with a sample
standard deviation of 0.8 minute.
a) At the 0.05 level of significance, is there evidence that the population mean waiting time
is different from 3.7 minutes?
b) Because the sample size is 64, do you need to be concerned about the shape of the
population distribution when conducting the t test in (a)? Explain.

Solution:

Given that,

Population mean =   = 3.7

Sample mean =   = 3.57

Sample standard deviation = s = 0.8

Sample size = n = 64

Level of significance =   = 0.05

This is a two tailed test.

Part a)

The null and alternative hypothesis is,

Ho:     3.7
Ha:     3.7

The test statistics, as the size of sample is > 30, so we apply z-test:

z = (   -   )/ (s/ )

= (3.57 - 3.7 ) / ( 0.8 /   64 )

= -1.3
df = n - 1 = 63

P- Value = 0.1983   

The p-value is p = 0.1983 > 0.05, it is concluded that the null hypothesis is fails to reject.

Conclusion:

It is concluded that the null hypothesis Ho is fails to reject. Therefore, there is not enough
evidence to claim that the population mean waiting time is different from 3.7 minutes, at the 0.05
significance level.

Part b).

We have to apply z-test, because the standard deviation is given and the n >30, so
we will apply z-test. We will apply t-test when standard deviation is unknown and
n ≤ 30.

Question 5:

Solution:

a) Part 1:

At the 0.05 level of significance, is there evidence that the population mean
waiting time is less than 5 minutes?
Step 1: compute the mean and standard deviation
Mean = 4.28667
Median = 4.5
15
1
Variance = ∑ ¿¿
15 i=1

Use variance for calculating standard deviation

Standard deviation = √ variance=1.6380

n=15
x́=4.28667 mean time less than 5 (< 5)
Sample standard Deviation = 1.6380

To test
H 0 :μ ≥ 5 vs H 1 : μ<5
Test Statistic,
x́−μ
t=
S
√n
4.2866−5
t=
1.6380
√ 15
−0.7134
t=
0.4229
t=−1.68693
|t|=1.68693

p-value = 1.68693>0.05

we fail to reject the null hypothesis

there is insufficient evidence to conclude that the population mean waiting time is
less than 5 min.
 b. Part 2:

As a customer walks into the branch office during the lunch hour, she asks the
branch manager how long she can expect to wait. The branch manager replies,
“Almost certainly not longer than 5 minutes.” On the basis of the results of (a),
evaluate this statement.
Solution:
As Mean < Median < 5 min and there is no outlier and SD= 1.6 min, so we can
expect that they will come back with more than half chance.