06egHTsab

06egHTsab - ISOM111 Business Statistics(Fall 2010 Tutorial...

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ISOM111 Business Statistics (Fall 2010) Tutorial Exercise 6 Examples for Procedures of Testing Hypotheses about Population Mean μ X Suppose the director of manufacturing at a clothing factory needs to determine whether a new machine is producing a particular type of cloth according to the manufacturer’s speci f cations, which indicate that the cloth should have a mean breaking strength of 70 pounds and a standard deviation of 3.5 pounds. A sample of 49 pieces reveals a sample mean of 71.5 pounds. (Ai) Is there any evidence showing that the machine manufactures the cloth with a higher average breaking strength than the manufacturer’s speci f cations at 5% signi f cance level? State the null and H 0 : μ 70 pounds alternative hypotheses: H a : μ> 70 pounds State α : α =0 . 05 Critical value: z α =1 . 645 Decision Rule: Reject H 0 if z> 1 . 645 Test Statistics: z obs = X μ 0 σ/ n = 71 . 5 70 3 . 5 / 49 =3 . 00 Decision: Since
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This note was uploaded on 01/06/2011 for the course ISOM 111 taught by Professor Hu,inchi during the Fall '10 term at HKUST.

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06egHTsab - ISOM111 Business Statistics(Fall 2010 Tutorial...

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