Hypothesis Testing For Mean and

Proportions

Exercises

WK 1
Remember
• When working with means:
𝑥ҧ −𝜇
• 𝜎 known: 𝑧=
𝜎/ 𝑛
𝑥ҧ −𝜇
• 𝜎 unknown: 𝑡 =
𝑠/ 𝑛
• When working with proportions:
ҧ
𝑝−𝑝
• 𝑧=
𝑝(1−𝑝)
𝑛

• Critical-value approach (𝑧 or 𝑥):

ҧ
1. Find the critical value 𝑧 from the level of significance 𝛼 and
compare the test statistic to the critical value
𝜎
2. Find 𝑥ҧ𝛼 = 𝜇 + 𝑧𝛼 (the corresponding value of 𝑧 in the
𝑛
sample distribution) and compare the test statistics to 𝑥ҧ𝛼
𝜎
1. In two-tailed test: 𝑥ҧ𝛼 = 𝜇 ± 𝑧𝛼
𝑛
• p-value approach:
• Use the test statistic to determine the p-value
• Compare the p-value to the level of significance 𝛼
• In two-tailed test: compare (p-value x 2) to 𝛼
WK 2
Ex 9.5

WK 5
 a/2 =0.005 a/2
Ex 9.5- Sol1: 𝑧𝛼 Do not reject H0

-2.575 0 2.575
Two tailed test
a. This is a two-tailed test of the population mean with
known standard deviation
Decision rule is: reject the null hypothesis if the
calculated value of the test statistic, z, is greater than
2.575 or less than – 2.575. Otherwise, do not reject.
b. Test statistics:
z  196.5 – 200  / (9 / 64 )  –3.111
c. Conclusion: the calculated value of the test statistic, z =
–3.111, is less than –2.575, reject the null hypothesis
and conclude that the population mean is not equal to
200. WK 6
 a/2 =0.005 a/2
Ex 9.5- Sol2: 𝑥ҧ𝛼 Do not reject H0

197.10 200 202.89

Two tailed test
a. We need to express the critical values ±𝑧𝛼/2 in the
same unit as the sample mean (then compare it to 𝑥):ҧ

b. Decision rule is: reject the null hypothesis if the sample

mean the test statistic, 𝑥,ҧ is greater than 202.89 or less
than 197.10. Otherwise, do not reject.
c. Conclusion: Since the value of 𝑥ҧ = 196.5 is less
197.19, reject the null hypothesis and conclude that
the population mean is not WK
equal to 200. 7
Ex 9.5- Sol3: p-value
a. Decision rule is: reject the null hypothesis if p-value
is less than 𝛼. Otherwise, do not reject.
b. Compute p-value:
196.5−200
𝑃 𝑥ҧ ≤ 196.5 = 𝑃 𝑧 ≤ 9 = 0.00093
64
(using excel, our table gives 0.001 approximately)
p-value = 2(𝟎. 𝟎𝟎𝟎𝟗𝟑) = 0.00186
c. Conclusion: Since the value p-value = 0.00186 is
less than 𝛼 = 0.01, reject the null hypothesis and
conclude that the population mean is not equal to
200.
WK 8
 Ex 9.5- Illustration of
the 3 methods
Method 3: Test statistics
𝜶
p-value = 2(0.00093) = = 𝟎. 𝟎𝟎𝟓
𝟐
0.00186
Do not reject H0

Method 1: z𝑡𝑒𝑠𝑡 = −3.111 -2.575 𝜇=0 2.575

Method 2: 𝑥ҧ = 196.5 197.10 𝜇 = 200 202.89

WK 9
Ex 9.6

WK 10
 Ex 9.6- Solution
This is a one-tailed test of the population mean with
known.
a. Therefore, the decision rule is: reject the null
hypothesis if the calculated value of the test
statistic, z, is greater than the critical value of the
test statistic, 2.05. Otherwise, do not reject.
b. Test statistics value:
z   47.1 – 45  / (9 / 80 )  2.087.
c. From the standard normal table, p-value = 0.5 –
0.4817 = 0.0183

WK 11
Ex 9.6- Solution
d. Because the computed value of z = 2.087 is greater
than 2.05, we reject the null hypothesis and
conclude that the mean is greater than 45.
• Also because the p-value is less than 0.02

WK 12
Ex 9-12
A doctor is experimenting with a new medicine,
which will reduce the average time of recovery for
her patients. In her previous records, one patient
took an average time of four hours to recover from
his illness. Ten patients had been selected for her
experiment and their body temperatures had been
measured every half hour after taking the medicine.

Conduct an appropriate hypothesis testing at a 5%

significance level for the doctor. Based on the sample
information, what conclusion should she derive from
her experiment? WK 13
Ex 9-12 - Solution
1. Value of interest: the average time to recover
from his illness.
2. Formulate null and alternative hypotheses:

3. Determine the rejection region for α = 0.05

• 𝑡𝛼 = 1.8331 for df = 10 – 1 = 9,
• if t < – 1.8331 reject 𝐻0 . Otherwise, do not reject 𝐻0 .
4. Test statistics:

WK 14
Ex 9-12 - Solution
5. Decision and Interpretation:
• Because t = –0.3136 > –1.8331, do not reject 𝐻0 at
5% significance level
• The doctor has no sufficient evidence that her
patients may take an average time less than 4 hours
to recover.

WK 15
Ex 9-14
A mail-order business prides itself in its ability to fill customers’ orders in six
days or less on average. Periodically, the operations manager selects a
random sample of customer orders and determines the number of days
required to fill the orders. Based on this sample information, he decides if
the desired standard is being met. He will assume that the average number
of days to fill customers’ orders is six or less unless the data strongly suggest
otherwise.
a. On one occasion when a sample of 40 customers was selected, the
average number of days was 6.65, with a sample standard deviation of
1.5 days. Can the operations manager conclude that his mail-order
business is achieving its goal? Use a significance level of 0.025 to answer
this question.
b. The operations manager wishes to monitor the efficiency of his mail-
order service often. Therefore, he does not wish to repeatedly calculate
t-values to conduct the hypothesis tests. Obtain the critical value,തx𝛼 , so
that the manager can simply compare the sample mean to this value to
conduct the test.
WK 16
Ex 9-14 – Solution
𝐻0 : μ ≤ 6 days, 𝐻𝐴 : μ > 6 days
𝑛 = 40, 𝑥ҧ = 6.65, 𝜎 = 1.5, 𝛼 = 0.025
𝑡0.025 = 2.023
Part a:
• The critical value:
𝑑𝑓 = 𝑛 − 1 = 39
t0.025 = 2.023 (from the t-distribution table)
(Note: 𝑧0.025 = 1.96, can be used since 𝑛 > 30)
• The test statistics:
x   6.65  6.00 .65
t    2.7406
s/ n 1.5/ 40 .2372

• Decision:
Since 2.7406 > 2.023 reject 𝐻0 and conclude that the mail-
order business is not achieving its goal.
WK 17
Ex 9-14 – Solution
𝐻0 : μ ≤ 6 days, 𝐻𝐴 : μ > 6 days
6
𝑛 = 40, 𝑥ҧ = 6.65, 𝜎 = 1.5, 𝛼 = 0.025
𝑥ҧ0.025 = 6.479
Part b:

After getting the sample mean 𝒙 ഥ, the operation manager can

directly compare 𝒙ഥ to 𝑥ҧ𝛼 = 6.479 to make a decision:
• If 𝑥ҧ > 6.479 reject the null hypothesis. Otherwise, do not
reject.
• Again: Since n=40 is relatively large, the t-distribution could
be approximated with the normal distribution to compute:

WK 18
Ex 9-28

WK 19
Ex 9-28 - Solution

𝒏𝒑 = 𝟑𝟎 × 𝟎. 𝟒𝟓 = 𝟏𝟑. 𝟓
𝒏 𝟏 − 𝒑 = 𝟑𝟎 × 𝟎. 𝟓𝟓
= 𝟏𝟔. 𝟓

d. p-value = p (z > 1.101) = 0.5 – 0.3643 = 0.1357

Also, P-value > 𝛼 , we don’t have sufficient evidence to reject 𝐻0

WK 20
Ex 9-33
An academic report shows that students
scored better in the marketing module offered
by the academy in comparison to other
modules offered. Based on this information,
you suspect there are more students who are
in favor of the marketing module. You conduct
an online survey for a group of 385 students
and 101 of those students chose the
marketing module as their favorite. Does this
provide convincing statistical evidence of bias
in favor of the marketing module if the
proportion of students who chose the module
is significantly higher than 5/20?
Use a 10% significance level for you analysis.
WK 21
Ex 9-33 - Solution
1. Value of interest: Proportion of students who are
in favor of the marketing module
2. H0: p ≤ 0.25
HA: p > 0.25
3. Rejection region: a = 0.1 => 𝑧𝛼 = 1.28
If z > 1.28, reject H0. Otherwise, do not reject.
4. Test statistic:
p = 5/20 = 0.25, 𝑝= ҧ 101/385 = 0.2623
p p 0.2623  0.25
z   0.5583
p(1  p) 0.25(1  0.25)
n 385
WK 22
Ex 9-33 - Solution
5. Decision and Interpretation:
• Since z = 0.5583 < 1.28, we do not reject the null
hypothesis.
• There is insufficient evidence to conclude that more
than 25% of students are in favor of the marketing
module.

WK 23