Lesson 11:

z-test & t-test

Example 1:
A manufacturer claims that the average lifetime of his
lightbulbs is three 3 years or 36 months. The standard
deviation is 8 months. Fifty bulbs are selected, and the
average lifetime is found to be 32 months. Should the
manufacturer’s statement be rejected at α = 0.01?
STEP 1: List the given.
STEP 2: State the hypotheses.
STEP 3: State the level of significance:
STEP 4: Determine if it is a two-tailed, left-tailed or a right-
tailed test.
STEP 5: Identify the type of test to be used.
STEP 6: Determine the critical values and the rejection
region.
STEP 7: State the decision rule.
STEP 8: Compute the test statistic.
STEP 9: Make a decision.
Example 2:
A researcher wishes to see if the mean number of days
that a basic, low-price, small automobile sits on a dealer’s
lot is 29. A sample of 30 automobile dealers has a mean of
30.1 days for basic, low-price, small automobiles. At 𝜶 =
0.05, test the claim that the mean time is greater than 29
days. The standard deviation of the population is 3.8 days.
STEP 1: List the given.
STEP 2: State the hypotheses.
STEP 3: State the level of significance:
STEP 4: Determine if it is a two-tailed, left-tailed or a right-
tailed test.
STEP 5: Identify the type of test to be used.
STEP 6: Determine the critical values and the rejection
region.
STEP 7: State the decision rule.
STEP 8: Compute the test statistic.
STEP 9: Make a decision.