1. A factory must produce quality goods 99% of the time or more.

A test run of 50
items is made. Calculate if the factory is working correctly if there are 49 correct
items and the confidence of the test is 90%.
H0: Proportion of quality goods greater than or equal to 0.99: π>=0.99
H1: ,, ,, Less than 0.99
Thus, left-tailed test of proportion
49 ( 0.99 ) ( 1−0.99 )
α =1−0.9=0.1 , p=
0.98−0.99
50
=0.98 , p H 0=0.99 , σ p=
√ 50
=0.0141

Z= =−0.709>−|Z α|=−1.28
0.0141
So, H0 is accepted.

2. It is hypothesized that the average age of the workforce of a company is 36 years.

A sample of 50 workers has an average age 34.8 with std dev 1.8. Is the
hypothesis true at 90% confidence?

Two-tailed t-test since pop. Stdev is unknown and n<100

H0: Average age equal to 36, H1: Average age not equal to 36
x=34.8 , S=1.8 , n=50, α =1−90 %=0.1
Null hypothesis: μ H 0 = 36, Alternative : μ H 0 ≠ 36
S
This is a two-tailed test, so x has to be between μ H 0 ± t α /2
√n
Degrees of freedom: n-1=49, 0.05 t =T . INV .2 T ( 0.1,49 ) =1.68
S S
Critical values: μ H 0+ t α /2 =36.43, μ H 0−t α/2 =35.57
√n √n
Sample mean is below lower critical value.
Thus, null hypothesis rejected, average age of workforce is not 36.

3. It has been proven with 95% confidence that the average men’s shoe size in a city
is less than 45cm. If the sample has a mean of 44.2cm, and the population has a std
dev of 2.4cm, what is the possible sample size? (Use Z-table)

We have proved μ H 0< 45 cm ,which means a left-tailed test where

H0: μ H 0 ≥ 45 cm was rejected.
Thus, x́ < μH 0 −¿ Z α ∨σ / √ n
Given: x́=44.2, α =1−0.95=0.05 , μ H 0=45 , σ =2.4
1.645∗2.4
Thus , 44.2< 45−
√n
3.948 3.948 2
Thus , <0.8 , so n>( ) =24.35
√n 0.8
4. The average monthly salary of sample of 200 professionals is Rs. 65,000, with
stdev. Rs. 12400. The following tests are all at significance 5%.
(a) Is the average salary of the population of professionals equal to Rs. 63000?

n=200 ; x́=65000 , S=12400 ,

H 0 :μ=63000 ; thus two−tailed test , α =0.05 , μ H 0 =63000
Large sample ¿use Z−table
S
Two tailed, accept H0 if x́ between μ H 0 ± Z 0.025 ,norm . s . inv ( .025 )=−1.96
√n
1.96∗12400
¿ 63000 ±
√ 200
¿ 63000 ±1718.55=61281.45,64718.55
x́ is not between critical values, so reject H0, average not equal to 63000

(b) Is the average population salary greater than 63000?

H 1: μ>63000 , H 0 :μ ≤ 63000 ; rt−tailed test , α =0.05 , μ H 0=63000

S
Right tailed, reject H0 if x́ > μH 0 +|Z 0.05| , norm. s .inv ( .05 )=−1.645
√n
1.645∗12400
¿ 63000+ =64442.36
√ 200
Since, x́ >64442.36 , reject H 0 , salary is greater than 63000

5. It is hypothesized that men and women have an average height difference of 15cm.
A sample of 300 women have average height 158cm, std dev 11cm and a sample
of 200 men have average height 172cm, std dev 14cm. Is hypothesis true at
significance 5% for all tests? Assume populations independent.

F-test followed by 2-sample test for means

F-test H0: Variances equal, H1, Variances unequal
x́ 1=172 , n1=200 , S 1=14 , x́ 2=158 , n2=300 , S 2=11

142
Fstat = =1.62, F α =F . INV . RT ( 0.025,199,299 )=1.285 , F stat > F α reject H 0
11 2 2 2

For separate-variance t-test, H0: μ1−μ 2=15 ,two−tailed test

 ( x 1−x 2 ) −( μ1−μ2 ) ( 172−158 ) −15
t STAT = = =−0.85
14 2 11 2
√
2 2

√( S S
1
+
n1 n2
2
) +
200 300

2
S 21 S22 14 2 112
2

V=
( +
n 1 n2 ) =
( +
200 300 ) =356.34 356
2 2 2 2
Degrees of freedom S 21 S22 14 2 112
( ) ( ) ( ) ( )
n1
+
n2 200
+
300
n1−1 n2−1 200−1 300−1

Critical values ± t α =± T . INV .2 T ( 0.05,356 )=± 1.967

2

Since t STAT within critical values, accept H0, the difference is 15cm

6. It is hypothesized that Colgate has 10% or more market share than Pepsodent. Out
of a 1000 surveyed customers, 386 use Colgate. Out of a second sample of 1200
customers, 402 use Pepsodent. If the confidence level of the test is 95%, does the
hypothesis hold?

H 0 :π 1−π 2 ≥ 0.1 , H 1 :π 1−π 2< 0.1 whenα =1−0.95=0.05

386
n1 =1000 , x 1=386 , p1= =0.386 ,
1000
402
n2 =1200 , x 2=402, p2= =0.335 ,
1200
386+ 402
ṕ= =0.358 ,
1000+1200

( p1− p2 )− ( π 1−π 2 ) 0.051−0.1

Z STAT = = =−2.39 ,
1 1 1 1
√ p (1− p )
( +
n1 n 2 ) √ 0.358∗ (1−0.358 )∗ +
1000 1200 ( )
Left tailed test, so critical value=−|Z α|=−1.645

Since Z STAT ←|Z α|, the null hypothesis is rejected.

7. It is hypothesized that students from two different schools show the same variance
in a standardized test, with a significance of 0.1. 25 students from the first school
 show a std dev of 10 pts, and 30 students from the second school show std dev 12
pts. Are the variances equal?

Null Hypothesis H0: The two variances are equal.

S1 islarger std dev , so S1=12 , n1=30 , S2=10 , n2 =25 , α=0.1

S21 144
F STAT = = =1.44
S22 100

df 1 =n1−1=29 ≅ 30 , df 2=n2−1=24 , F α =1.94

2

Since 1.44<1.94, hypothesis is accepted.

8. Out of 1000 respondents, 602 say they have purchased Amul milk, and 624 say
they have purchased Mother Dairy, and150 people used neither product. At
significance 5%, can we say that Mother Dairy is more popular?
¿ . of Amul : π 1, ∝. of Mother Dairy :π 2
H1: π 2> π 1=π 1< π 2 , H 0: π 1 ≥ π 2 , so ¿ tailed test
Left tailed test, sig. 0.05
A+B= 602
A+C=624
D= 150
A+B+C+D = 1000, from these equations, B = 226, C = 248
226−248
Z= =−1.01
√ 226 +248
To reject H0, Z must be less than -1.645
So, accept H0, Mother Dairy is as popular or less than Amul

9. It is hypothesized that men are paid more than women in a company with 95%
confidence. Two samples are taken of 30 men and 20 women. Test the hypothesis
if, in a combined sample, the sum of ranks of the women is 617.

No. of women: n1 =20, no. of men: n2 =30, α =1−0.95=0.05 ,

H 0 : M 1 ≥ M 2, H 1 : M 1 < M 2, so left-tailed test. Sum of ranks of women: T 1=617
n 1( n+1) 20(51)
μT 1 = = =510
2 2
 n1 n 2(n+1)
σ T 1=
T −μ
√12
=

617−510
20∗30∗51
√ 12
=50.5

Z= 1 T 1 = =2.119>−|Z 0.05|=−1.645
σT 1 50.5
Thus, null hypothesis accepted, men are not paid more than women.

10. Annual income of workers in 4 offices is given in the Excel sheet “Practice
DOM501 Session 8-10”. Do the workers in the offices have the same median at
90% confidence?

Use the Rank.Avg command on the entire data set in order to generate the ranks
for all the data points.
Then we calculate the sum of ranks Tj by using SUM command on each column
of the ranks calculated by Rank.Avg command.
We get the ranks sum T1 (sample A) = 310, T2 = 68.5, T3 = 301, T4 = 310.5

We use the COUNT command to find sample sizes, n1=13, n2=9, n3=11, n4=11,
Total sample size n = 44. No. of samples c = 4

With the T values and n values, we calculate

T 2j
={ 7392.31,521.36,8236 .46,8764 .57 }
nj

c 2
Tj
Now, we can calculate H=
12
[ ∑
n ( n+ 1 ) j=1 n j ]
−3 ( n+1 )=15.998

Critical value χ 2α ( α =0.1 , df =c−1=3 )=chisq .inv . rt ( 0.1,3 )=6.25

Reject H 0 since ¿ χ 2α , medians are not equal.
Refer to excel sheet for details.