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w12_BS-HT1_post - Business Statistics Example A battery...

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Business Statistics Example A battery company claims that on average their batteries last 60 hours A sample of size 15 is obtained resulting in a sample mean of 52 hours. Assume that the battery lifetimes are normally distributed with unknown mean and variance 100. Test to see whether the companies batteries really last that long with α = 5%. 0 1 : 60 60 H H 0 5% 1.645; Reject if 1.645 obs z H z    52 60 3.098 10 15 obs x z n    3.098 obs zz       Remark: Variance = 100 = 10 Reject H o at 5% level of significance. There is sufficient evidence that the companies batteries do not last 60 hours.
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Business Statistics Procedures of Hypothesis Testing 1. State the Null and Alternative Hypotheses. 2. State the Rejection Region / Decision Rule. 3. Calculate the Observed Test Statistics. 4. Make decision. 5. Write down the conclusion. 0 1 1 1 : 60 vs. 60 (or 60 or 60) H H H H 1-sided test 2-sided test 1-sided test 0 5% 1.645; Reject if 1.645 obs z H z    52
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This note was uploaded on 01/01/2010 for the course ISOM ISOM111 taught by Professor Anthonychan during the Spring '09 term at HKUST.

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w12_BS-HT1_post - Business Statistics Example A battery...

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