06egHTscd

06egHTscd - ISOM111 Business Statistics (Fall 2010)...

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Unformatted text preview: ISOM111 Business Statistics (Fall 2010) Tutorial Exercise 6 Examples for Procedures of Testing Hypotheses about Population Mean μ X Solutions for [Part C] & [Part D] (Ci) Is there any evidence showing that the machine manufactures the cloth with a lower average breaking strength than the manufacturer’s speci f cations at 5% signi f cance level? State the null and H : 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 if z < − 1 . 645 Test Statistics: z obs = X − μ σ/ √ n = 68 . 5 − 70 3 . 5 / √ 49 = − 3 . 00 Decision: Since z obs = − 3 . 00 < − 1 . 645 , we reject H at 5% level of signi f cance. Conclusion: There is SUFFICIENT EVIDENCE to conclude that the machine manufactures the cloth with a lower average breaking strength than the manufacturer’s speci f cations at 5% level of signi f cance. (Cii) Is there any evidence showing that the machine deviates from the manufacturer’s speci...
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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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06egHTscd - ISOM111 Business Statistics (Fall 2010)...

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