Statistics for Business and

Economics

Chapter 6
Inferences Based on a Single Sample:
Tests of Hypothesis
 Learning Objectives

1. Distinguish Types of Hypotheses

2. Describe Hypothesis Testing Process
3. Explain p-Value Concept
4. Solve Hypothesis Testing Problems Based
on a Single Sample
5. Explain Power of a Test
 Statistical Methods

Statistical
Methods

Descriptive Inferential
Statistics Statistics

Hypothesis
Estimation
Testing
Hypothesis Testing
Concepts
 Hypothesis Testing
I believe the
population mean Reject
age is 50 Reject
hypothesis!
hypothesis!
Population (hypothesis). Not
Notclose.
close.

 

 
 

 Random
sample
Mean 
X = 20
 What’s a Hypothesis?

A belief about a population I believe the mean GPA

parameter of this class is 3.5!

• Parameter is
population mean,
proportion, variance
• Must be stated
before analysis

© 1984-1994 T/Maker Co.

 Null Hypothesis

1. What is tested
2. Has serious outcome if incorrect decision made
3. Always has equality sign: , , or 
4. Designated H0 (pronounced H-oh)
5. Specified as H0:   some numeric value
• Specified with = sign even if  or 
• Example, H0:   3
 Alternative Hypothesis

1. Opposite of null hypothesis

2. Always has inequality sign: ,, or 
3. Designated Ha
4. Specified Ha:  ,, or  some value
• Example, Ha:  < 3
 Identifying Hypotheses
Steps
Example problem: Test that the population mean
is not 3
Steps:
• State the question statistically (  3)
• State the opposite statistically ( = 3)
— Must be mutually exclusive & exhaustive
• Select the alternative hypothesis (  3)
— Has the , <, or > sign
• State the null hypothesis ( = 3)
 What Are the Hypotheses?
Is the population average amount of TV
viewing 12 hours?
• State the question statistically:  = 12
• State the opposite statistically:   12
• Select the alternative hypothesis: Ha:   12
• State the null hypothesis: H0:  = 12
 What Are the Hypotheses?
Is the population average amount of TV
viewing different from 12 hours?
• State the question statistically:   12
• State the opposite statistically:  = 12
• Select the alternative hypothesis: Ha:   12
• State the null hypothesis: H0:  = 12
 What Are the Hypotheses?
Is the average cost per hat less than or equal
to $20?
• State the question statistically:   20
• State the opposite statistically:   20
• Select the alternative hypothesis: Ha:   20
• State the null hypothesis: H0:   20
 What Are the Hypotheses?
Is the average amount spent in the bookstore
greater than $25?
• State the question statistically:   25
• State the opposite statistically:   25
• Select the alternative hypothesis: Ha:   25
• State the null hypothesis: H0:   25
 Basic Idea
Sampling Distribution
It is unlikely
that we would ... therefore, we
get a sample reject the
mean of this hypothesis that
value ...  = 50.

... if in fact this were

the population mean

20  = 50 Sample Means
H0
 Level of Significance
1. Probability
2. Defines unlikely values of sample statistic if
null hypothesis is true
• Called rejection region of sampling
distribution
3. Designated (alpha)
• Typical values are .01, .05, .10
4. Selected by researcher at start
 Rejection Region
(One-Tail Test)
Sampling Distribution Level of Confidence
Rejection
Region
1–

Nonrejection
Region

Ho Sample Statistic
Critical Value
Value
Observed sample statistic
 Rejection Region
(One-Tail Test)
Sampling Distribution Level of Confidence
Rejection
Region
1–

Nonrejection
Region

Ho Sample Statistic
Critical Value
Value
Observed sample statistic
 Rejection Regions
(Two-Tailed Test)
Sampling Distribution Level of Confidence
Rejection Rejection
Region Region
1–
1/2  1/2 
Nonrejection
Region

Ho Sample Statistic
Critical Value Critical
Value Value
Observed sample statistic
 Rejection Regions
(Two-Tailed Test)
Sampling Distribution Level of Confidence
Rejection Rejection
Region Region
1–
1/2  1/2 
Nonrejection
Region

Ho Sample Statistic
Critical Value Critical
Value Value
Observed sample statistic
 Rejection Regions
(Two-Tailed Test)
Sampling Distribution Level of Confidence
Rejection Rejection
Region Region
1–
1/2  1/2 
Nonrejection
Region

Ho Sample Statistic
Critical Value Critical
Value Value
Observed sample statistic
Decision Making Risks
 Errors in
Making Decision
1. Type I Error
• Reject true null hypothesis
• Has serious consequences
• Probability of Type I Error is (alpha)
— Called level of significance
2. Type II Error
• Do not reject false null hypothesis
• Probability of Type II Error is (beta)
 Decision Results
H0: Innocent
Jury Trial H0 Test
Actual Situation Actual Situation
Verdict Innocent Guilty Decision H0 True H0
False
Type II
Innocent Correct Error Accept 1– Error
H0
()
Reject Type I Power
Guilty Error Correct
H0 Error () (1 – )
  &  Have an
Inverse Relationship
You can’t reduce both
errors simultaneously!



 Factors Affecting 
1. True value of population parameter
• Increases when difference with hypothesized
parameter decreases
2. Significance level, 
• Increases when decreases
3. Population standard deviation, 
• Increases when  increases
4. Sample size, n
• Increases when n decreases
Hypothesis Testing Steps
 H0 Testing Steps
• State H0 • Set up critical values

• State Ha • Collect data

• Choose 
• Compute test statistic

• Choose n
• Make statistical decision

• Choose test
• Express decision
 One Population Tests

One
Population

Mean Proportion Variance

Z Test t Test Z Test 2 Test

(1 & 2 (1 & 2 (1 & 2 (1 & 2
tail) tail) tail) tail)
Two-Tailed Z Test
of Mean ( Known)
 One Population Tests

One
Population

Mean Proportion Variance

Z Test t Test Z Test 2 Test

(1 & 2 (1 & 2 (1 & 2 (1 & 2
tail) tail) tail) tail)
 Two-Tailed Z Test
for Mean ( Known)
1. Assumptions
• Population is normally distributed
• If not normal, can be approximated by
normal distribution (n  30)
2. Alternative hypothesis has  sign
3. Z-Test Statistic
X  x X 
Z 
x 
n
 Two-Tailed Z Test
for Mean Hypotheses
H0:=0 Ha: ≠ 0

Reject H 0 Reject H
 

0 Z
 Two-Tailed Z Test
Finding Critical Z
What is Z given  = .05? Standardized Normal
Probability Table (Portion)
.500  
- .025 =1 Z .05 .06 .07
.475 1.6 .4505 .4515 .4525
 = .025
1.7 .4599 .4608 .4616

-1.96 0 1.96 Z 1.8 .4678 .4686 .4693

 1.9 .4744 .4750 .4756

 Two-Tailed Z Test Example
Does an average box of cereal
contain 368 grams of cereal?
A random sample of 25 boxes
showed x = 372.5. The
company has specified  to
be 15 grams. Test at the .05
level of significance.
368 gm.
 Two-Tailed Z Test Example

Does an average box of cereal

contain less than 368 grams
of cereal? A random sample
of 25 boxes showed x =
372.5. The company has
specified  to be 15 grams.
Test at the .05 level of
significance. 368 gm.
 Two-Tailed Z Test Solution
• H0:  = 368 Test Statistic:
• Ha:   368 X   372.5  368
Z  1.50
•  .05  15
• n  25 n 25

• Critical Value(s):
Decision:
Reject H 0 Reject H 0 Do not reject at  = .05
.025 .025 Conclusion:
No evidence average
-1.96 0 1.96 Z is not 368
 Two-Tailed Z Test Thinking
Challenge
You’re a Q/C inspector. You want to find out
if a new machine is making electrical cords to
customer specification: average breaking
strength of 70 lb. with  = 3.5 lb. You take a
sample of 36 cords & compute a sample mean
of 69.7 lb. At the .05 level of significance, is
there evidence that the machine is not meeting
the average breaking strength?
 Two-Tailed Z Test Solution*
• H0:  = 70 Test Statistic:
• Ha:   70 X   69.7  70
Z   .51
•  =.05  3.5
• n = 36 n 36
• Critical Value(s):
Decision:
Reject H 0 Reject H 0 Do not reject at  = .05
.025 .025 Conclusion:
No evidence average
-1.96 0 1.96 Z is not 70
One-Tailed Z Test
of Mean ( Known)
 One-Tailed Z Test
for Mean ( Known)
1. Assumptions
• Population is normally distributed
• If not normal, can be approximated by
normal distribution (n  30)
2. Alternative hypothesis has < or > sign
3. Z-test Statistic
X  x X 
Z 
x 
n
 One-Tailed Z Test
for Mean Hypotheses
H0:=0 Ha: < 0 H0:=0 Ha: > 0

Reject H 0 Reject H0
 

0 Z 0 Z
Must be significantly Small values satisfy H0 .
below  Don’t reject!
 One-Tailed Z Test
Finding Critical Z
What Is Z given  = .025? Standardized Normal
Probability Table (Portion)
.500  
- .025 =1 Z .05 .06 .07
.475 1.6 .4505 .4515 .4525
 = .025
1.7 .4599 .4608 .4616

0 1.96 Z 1.8 .4678 .4686 .4693

 1.9 .4744 .4750 .4756

 One-Tailed Z Test
Example
Does an average box of cereal
contain more than 368 grams
of cereal? A random sample of
25 boxes showed x = 372.5.
The company has specified  to
be 25 grams. Test at the .05
level of significance.
368 gm.
 One-Tailed Z Test Solution
• H0:  = 368 Test Statistic:
• Ha:  > 368 X   372.5  368
Z  1.50
•  = .05  15
• n = 25 n 25
• Critical Value(s):
Decision:
Reject Do not reject at  = .05
.05 Conclusion:
No evidence average is
0 1.645 Z more than 368
 One-Tailed Z Test Thinking
Challenge
You’re an analyst for Ford. You
want to find out if the average miles
per gallon of Escorts is at least 32
mpg. Similar models have a
standard deviation of 3.8 mpg. You
take a sample of 60 Escorts &
compute a sample mean of 30.7
mpg. At the .01 level of
significance, is there evidence that
the miles per gallon is at least 32?
 One-Tailed Z Test Solution*
• H0:  = 32 Test Statistic:
• Ha:  < 32 X   30.7  32
Z   2.65
•  = .01  3.8
• n = 60 n 60
• Critical Value(s):
Decision:
Reject Reject at  = .01
.01 Conclusion:
There is evidence average
-2.33 0 Z is less than 32
Observed Significance
Levels: p-Values
 p-Value
1. Probability of obtaining a test statistic more
extreme (or than actual sample value,
given H0 is true
2. Called observed level of significance
• Smallest value of  for which H0 can be rejected
3. Used to make rejection decision
• If p-value  , do not reject H0
• If p-value < , reject H0
 Two-Tailed Z Test
p-Value Example
Does an average box of cereal
contain 368 grams of cereal? A
random sample of 25 boxes
showed x = 372.5. The
company has specified  to be
25 grams. Find the p-Value.

368 gm.
 Two-Tailed Z Test
p-Value Solution
X 372.5  368
Z  1.50
 15
n 25

0 1.50 Z
Z value of sample
 statistic (observed)
 Two-Tailed Z Test
p-Value Solution
p-value is P(Z  -1.50 or Z  1.50)


1/2 p-Value 1/2 p-Value .5000
- .4332
.0668
.4332

-1.50 0 1.50 Z
From Z table: Z value of sample
 lookup 1.50  statistic (observed)
 Two-Tailed Z Test
p-Value Solution
p-value is P(Z  -1.50 or Z  1.50) = .1336

1/2 p-Value 1/2 p-Value 

.0668 .0668 .5000
- .4332
.0668

-1.50 0 1.50 Z
From Z table: Z value of sample
 lookup 1.50  statistic
 Two-Tailed Z Test
p-Value Solution
(p-Value = .1336)  ( = .05).
Do not reject H0.
1/2 p-Value = .0668 1/2 p-Value = .0668

Reject H0 Reject H0
1/2  = .025 1/2  = .025

-1.50 0 1.50 Z
Test statistic is in ‘Do not reject’ region
 One-Tailed Z Test
p-Value Example
Does an average box of cereal
contain more than 368 grams
of cereal? A random sample
of 25 boxes showed x = 372.5.
The company has specified 
to be 25 grams. Find the p-
Value.
368 gm.
One-Tailed Z Test
p-Value Solution
X   372.5  368
Z  1.50
 15
n 25

0 1.50 Z
Z value of sample
 statistic
 One-Tailed Z Test
p-Value Solution
p-Value is P(Z  1.50)


Use p-Value

alternative .5000
hypothesis - .4332
to find .4332 .0668
direction
0 1.50 Z
 From Z table:
 Z value of sample
lookup 1.50 statistic
 One-Tailed Z Test
p-Value Solution
p-Value is P(Z  1.50) = .0668

 p-Value
Use 
.0668 .5000
alternative
hypothesis - .4332
to find .4332 .0668
direction
0 1.50 Z
 From Z table:
 Z value of sample
lookup 1.50 statistic
 One-Tailed Z Test
p-Value Solution
(p-Value = .0668)  ( = .05).
Do not reject H0.
p-Value = .0668

Reject H0
 = .05

0 1.50 Z
Test statistic is in ‘Do not reject’ region
 p-Value
Thinking Challenge
You’re an analyst for Ford. You
want to find out if the average
miles per gallon of Escorts is at
least 32 mpg. Similar models
have a standard deviation of 3.8
mpg. You take a sample of 60
Escorts & compute a sample mean
of 30.7 mpg. What is the value of
the observed level of significance
(p-Value)?
 p-Value
Solution*
p-Value is P(Z  -2.65) = .004.
p-Value < ( = .01). Reject H0.
 p-Value

Use .5000
alternative
.004 - .4960
hypothesis .0040
to find .4960
direction
-2.65 0 Z
Z value of sample From Z table:
 statistic  lookup 2.65
 Two-Tailed t Test
of Mean ( Unknown)
 One Population Tests

One
Population

Mean Proportion Variance

Z Test t Test Z Test 2 Test

(1 & 2 (1 & 2 (1 & 2 (1 & 2
tail) tail) tail) tail)
 t Test for Mean
( Unknown)
1. Assumptions
• Population is normally distributed
• If not normal, only slightly skewed & large
sample (n  30) taken
2. Parametric test procedure
3. t test statistic
X  
t
S
n
 Two-Tailed t Test
Finding Critical t Values
Given: n = 3;  = .10 Critical Values of t Table
 (Portion)
df = n - 1 = 2 
v t .10 t .05 t .025
 /2 = .05
 1 3.078 6.314 12.706
 /2 = .05
2 1.886 2.920 4.303
-2.920 0 2.920 t
3 1.638 2.353 3.182


 Two-Tailed t Test
Example
Does an average box of
cereal contain 368 grams of
cereal? A random sample
of 36 boxes had a mean of
372.5 and a standard
deviation of 12 grams. Test
at the .05 level of
significance.
368 gm.
 Two-Tailed t Test
Solution
• H0:  = 368 Test Statistic:
• Ha:   368 X   372.5  368
t  2.25
•  = .05 S 12
• df = 36 - 1 = 35 n 36
• Critical Value(s):
Decision:
Reject H0 Reject H0 Reject at  = .05
.025 .025
Conclusion:
There is evidence population
-2.030 0 2.030 t average is not 368
 Two-Tailed t Test
Thinking Challenge
You work for the FTC. A
manufacturer of detergent claims that
the mean weight of detergent is 3.25
lb. You take a random sample of 64
containers. You calculate the sample
average to be 3.238 lb. with a standard
deviation of .117 lb. At the .01 level
of significance, is the manufacturer
correct?
3.25 lb.
 Two-Tailed t Test
Solution*
• H0:  = 3.25 Test Statistic:
• Ha:   3.25 X   3.238  3.25
t   .82
•   .01 S .117
• df  64 - 1 = 63 n 64
• Critical Value(s):
Decision:
Reject H 0 Reject H0 Do not reject at  = .01
.005 .005 Conclusion:
There is no evidence
-2.656 0 2.656 t average is not 3.25
 One-Tailed t Test
of Mean ( Unknown)
 One-Tailed t Test
Example
Is the average capacity of
batteries at least 140 ampere-
hours? A random sample of 20
batteries had a mean of 138.47
and a standard deviation of
2.66. Assume a normal
distribution. Test at the .05
level of significance.
 One-Tailed t Test
Solution
• H0:  = 140 Test Statistic:
• Ha:  < 140 X   138.47  140
t   2.57
•  = .05 S 2.66
• n 20
df = 20 - 1 = 19
• Critical Value(s):
Decision:
Reject H0 Reject at  = .05
.05 Conclusion:
There is evidence population
-1.729 0 t average is less than 140
 One-Tailed t Test
Thinking Challenge
You’re a marketing analyst for Wal-
Mart. Wal-Mart had teddy bears on
sale last week. The weekly sales ($ 00)
of bears sold in 10 stores was:
8 11 0 4 7 8 10 5 8 3
At the .05 level of significance, is there
evidence that the average bear sales per
store is more than 5 ($ 00)?
 One-Tailed t Test
Solution*
• H0:  = 5 Test Statistic:
• Ha:  > 5 X   6.4  5
t  1.31
•  = .05 S 3.373
• df = 10 - 1 = 9 n 10
• Critical Value(s):
Decision:
Reject H0 Do not reject at  = .05
.05
Conclusion:
There is no evidence
0 1.833 t average is more than 5
Z Test of Proportion
 Data Types

Data

Quantitative Qualitative

Discrete Continuous
 Qualitative Data
1. Qualitative random variables yield
responses that classify
• e.g., Gender (male, female)
2. Measurement reflects number in category
3. Nominal or ordinal scale
4. Examples
• Do you own savings bonds?
• Do you live on-campus or off-campus?
 Proportions
1. Involve qualitative variables
2. Fraction or percentage of population in a
category
3. If two qualitative outcomes, binomial
distribution
• Possess or don’t possess characteristic
^
4. Sample Proportion (p)
x number of successes
pˆ  
n sample size
 Sampling Distribution
of Proportion
1. Approximated by
Sampling Distribution
Normal Distribution
^
P(P )
npˆ 3 npˆ 1  pˆ  .3
– Excludes 0 or n .2
.1
^
2. Mean .0 P
.0 .2 .4 .6 .8 1.0
 P̂  p
3. Standard Error
p0 (1  p0 )
 pˆ  where p0 = Population Proportion
n
 Standardizing Sampling
Distribution of Proportion
^ ^
p  p ^ p  p0
Z 
 p^ p0(1  p0)
Sampling n Standardized Normal
Distribution Distribution
 ^P z= 1

 P^ ^
P  Z= 0 Z
 One Population Tests

One
Population

Mean Proportion Variance

Z Test t Test Z Test 2 Test

(1 & 2 (1 & 2 (1 & 2 (1 & 2
tail) tail) tail) tail)
 One-Sample Z Test
for Proportion
1. Assumptions
• Random sample selected from a binomial
population
• Normal approximation can be used if
npˆ 0 15 and nqˆ0 15

2. Z-test statistic for proportion

p̂  p0 Hypothesized
Z
p0 q0 population proportion
n
 One-Proportion Z Test
Example
The present packaging system
produces 10% defective
cereal boxes. Using a new
system, a random sample of
200 boxes had11 defects.
Does the new system produce
fewer defects? Test at the .05
level of significance.
 One-Proportion Z Test
Example
The present packaging system
produces 10% defective
cereal boxes. Using a new
system, a random sample of
200 boxes had11 defects.
Does the new system produce
still .10 of defects boxes?
Test at the .10 level of
significance.
 One-Proportion Z Test
Solution
• H0: p = .10 Test Statistic:
11
• Ha: p < .10 pˆ  p0 200
 .10
• Z   2.12
 = .05 p0 q0 .10 .90
• n = 200 n 200
• Critical Value(s):
Decision:
Reject H0 Reject at  = .05
.05 Conclusion:
There is evidence new
-1.645 0 Z system < 10% defective
 One-Proportion Z Test
Thinking Challenge
You’re an accounting manager. A
year-end audit showed 4% of
transactions had errors. You
implement new procedures. A random
sample of 500 transactions had 25
errors. Has the proportion of
incorrect transactions changed at
the .05 level of significance?
 One-Proportion Z Test
Solution*
• H0: p = .04 Test Statistic:
25
• Ha: p  .04 ˆp  p0 500  .04
• Z  1.14
 = .05 p0 q0 .04 .96
• n = 500 n 500
• Critical Value(s):
Decision:
Reject H 0 Reject H 0
Do not reject at  = .05
.025 .025
Conclusion:
There is evidence
-1.96 0 1.96 Z proportion is not 4%
Calculating Type II Error
Probabilities
 Power of Test
1. Probability of rejecting false H0
• Correct decision

2. Designated 1 - 
3. Used in determining test adequacy
4. Affected by
• True value of population parameter
• Significance level 
• Standard deviation & sample size n
 Finding Power
Step 1
  Reject H0
Hypothesis:
15
n 
Do Not Draw
H0: 0  368 25 Reject H0
Ha: 0 < 368  = .05

0 = 368 X
 Finding Power
Steps 2 & 3
  Reject H0
Hypothesis:
15
n 
Do Not Draw
H0: 0  368 25 Reject H0
Ha: 0 < 368  = .05

0 = 368 X
‘True’ Situation:
a = 360 (Ha)

Draw

 1-
Specify

a = 360 X
 Finding Power
Step 4
  Reject H0
Hypothesis:
15
n
Do Not Draw

H0: 0  368 25 Reject H0
Ha: 0 < 368  = .05

0 = 368 X
 15
‘True’ Situation:
a = 360 (Ha)
 X L  0  Z
n
368  1.64
25
Draw
363.065
 1- 
Specify

a = 360 363.065 X
 Finding Power
Step 5
  Reject H0
Hypothesis:
15
n
Do Not

H0: 0  368 Draw
25 Reject H0
Ha: 0 < 368  = .05

0 = 368 X
 15
‘True’ Situation:
a = 360 (Ha)
 X L  0  Z
n
368  1.64
25
Draw
 = .154 363.065
  1- =.846

Specify Z Table

a = 360 363.065 X
 Power Curves
Power H0:  0 Power H0:  0

Possible True Values for a Possible True Values for a

Power H0:  =0

 = 368 in
Example
Possible True Values for a
Chi-Square ( ) Test
2

of Variance
 One Population Tests

One
Population

Mean Proportion Variance

Z Test t Test Z Test 2 Test

(1 & 2 (1 & 2 (1 & 2 (1 & 2
tail) tail) tail) tail)
 Chi-Square (2) Test
for Variance
1. Tests one population variance or standard
deviation
2. Assumes population is approximately
normally distributed
3. Null hypothesis is H0: 2 = 02

4. Test statistic
2 (n 1)S 2 Sample variance
  2
0 Hypothesized pop. variance
 Chi-Square (2) Distribution

Select simple random

Population sample, size n. Sampling Distributions
Compute s2 for Different Sample
 Sizes

 Compute 2 =(n-1)s 2 / 2

0 1 2 3 2
Astronomical number
of 2 values
 Finding Critical Value
Example
What is the critical 2 value given:
Ha: 2 > 0.7
Reject
n=3
 =.05?  = .05
df = n - 1 = 2
0 5.991  2

2 Table Upper Tail Area

(Portion)
DF .995 … .95 … .05
1 ... … 0.004 … 3.841
2 0.010 … 0.103 … 5.991
 Finding Critical Value
Example
What is the critical 2 value given:
Ha: 2 < 0.7
n=3 What do you do
 =.05? if the rejection
region is on the
left?
 Finding Critical Value
Example
What is the critical 2 value given:
Ha: 2 < 0.7 Upper Tail Area
Reject H0
for Lower Critical
n=3
 = .05 Value = 1-.05 = .95
 =.05?
df = n - 1 = 2
0 .103 2
2 Table Upper Tail Area
(Portion)
DF .995 … .95 … .05
1 ... … 0.004 … 3.841
2 0.010 … 0.103 … 5.991
 Chi-Square ( ) Test 2

Example
Is the variation in boxes of
cereal, measured by the
variance, equal to 15
grams? A random sample
of 25 boxes had a standard
deviation of 17.7 grams.
Test at the .05 level of
significance.
 Chi-Square (2) Test
Solution
• H0: 2 = 15
Test Statistic:
• Ha: 2  15
(n  1)S 2 (25  1)17.7 2
•  = .05 2  
 02 152
• df = 25 - 1 = 24
• = 33.42
Critical Value(s):
Decision:
 /2 = .025 Do not reject at  = .05
Conclusion:
There is no evidence
0 12.401 39.364 2 2 is not 15
 Conclusion
1. Distinguished Types of Hypotheses
2. Described Hypothesis Testing Process
3. Explained p-Value Concept
4. Solved Hypothesis Testing Problems Based
on a Single Sample
5. Explained Power of a Test
 Question 1.
• A company guarantees that its torch batter ies
will last an average of 9.75 hours. After
complains at the company takes a random
sample of battries from stock and tests their
lifetime with the following results :
9.0 9.2 9.5 10.1 9.8 9.3 9.7 9.6 10.0
Stating any assumption made, test the
guarantee at the 0.05 significant level.
• Seuah perusahaan olahraga mengembangkan
sejenis batang pancing sintetis yang dikatakan
mempunyai kekuatan dengan rata-rata tidak
kurang 8 kg. dan simpangan baku 0.5 kg.
Ujilah pernyataan tersebut bila suatu contoh
acak 40 batang pancing. Setelah diuji rata rata
7.8 kg. gunakan taraf nayata 0.05
 Question -2
• It is claimed by telephone company that, on
any single day, of all public telephones, the
proportion out of order is under 6%. A random
sample of 300 telephones show that, on a
particular day, 25 were out of order. Does this
evidence show that the telephone company’s
claim is false with 0.01 level significant.