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Hypothesis Testing in Business Analysis

The document contains 7 multiple choice questions related to hypothesis testing for one population. The questions provide sample data and ask to determine if conclusions can be drawn about population means or proportions based on the sample results using various significance levels.

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0% found this document useful (0 votes)
9 views2 pages

Hypothesis Testing in Business Analysis

The document contains 7 multiple choice questions related to hypothesis testing for one population. The questions provide sample data and ask to determine if conclusions can be drawn about population means or proportions based on the sample results using various significance levels.

Uploaded by

Robert Oo
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

BQA1014 Quantitative Analysis Models for Business TRI 2 2022/2023

Tutorial 3B: Hypothesis for one Population

1. A sample of 8 independent observations provides the following:

3.6 3.9 3.8 4.5 4.9 4.2 4.4 3.8

Can you conclude at 5% level of significance that the mean is below 5?

2. A house cleaning service claims that they can clean a four bedroom house in less
than 2 hours. A sample of n = 16 houses is taken and the sample mean is found to
be 1.97 hours and the sample standard deviation is found to be 0.1 hours. Conduct
a hypothesis testing by using 0.05 level of significant to verify the claim.

3. The quality control-manager at a light bulb factory needs to determine whether


the mean life of a large shipment of light bulbs is equal to 375 hours. The
population standard deviation is 100 hours. A random sample of 64 light bulbs
indicates a sample mean life of 350 hours. At the 0.05 level of significance, is
there evidence that the mean life is different from 375 hours?

4. A stationary store wants to estimate the mean retail value of greeting cards that
has in its inventory. A random sample of 100 greeting cards indicates a mean
value of RM2.55 and a standard deviation of RM0.44. Is there evidence that the
population mean retail value of the greetings cards is different from RM2.50? Use
0.05 level of significance.

5. A company that makes and markets a device that is aimed at helping people quit
smoking claims that at least 70 percent of the people who have used the product
have quit smoking. To test this, a random sample of n = 100 product users was
selected. Of these, 65 people were found to have quit smoking. Test whether the
claim is true by using a 0.05 significance level.

6. The sports page in a local newspaper reported that 70% of males over the age of
18 in Malaysia would skip an important event such as a birthday party or a
wedding dinner to watch their favourite professional sports team play. A random
sample of 676 adult males over the age of 18 in Melaka reveals that 507 would be
willing to skip an important event to watch their favourite team play. Can you
conclude at 1% significance level that the proportion of adult males who would
skip an important event to watch their favourite team play is greater in Melaka
than in the nation as a whole?

7. A standard policy for academic counselling helps 72% of all repeating students to
pass their final examination in an average of 43 counselling sessions. The
counsellor considers supporting a new counselling policy if it is effective in
reducing the number of counselling sessions while retaining the passing rate. A
study on 50 repeating students who were counselled under the new policy reveals

1
BQA1014 Quantitative Analysis Models for Business TRI 2 2022/2023

that 32 of them passed their final examination in an average of 40 counselling


sessions with a standard deviation of 9 sessions. Can we conclude that

(i) the passing rate under the new counselling policy is lower than 72% at 1%
significance level?
(ii) the new counselling policy is effective in reducing the number of
counselling sessions at 5% significance level?

Common questions

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We will use a z-test to evaluate the hypothesis. The null hypothesis (H0) is that the mean life of the light bulbs is 375 hours. The alternative hypothesis (Ha) is that the mean life is not equal to 375 hours. We have a sample mean of 350 hours, a sample size of 64, and a population standard deviation of 100 hours. Computing the z-score, we compare it with the critical z-value at 0.05 significance level. If the z-score exceeds the critical value, we reject H0 and conclude the mean life differs from 375 hours .

To test this claim, a one-proportion z-test is conducted. The null hypothesis (H0) states that the pass rate is 72%, and the alternative hypothesis (Ha) indicates it is lower than 72%. With 32 of 50 students passing, we calculate the z-score for the observed proportion. At a 1% significance level, if the z-score falls within the rejection region, H0 is rejected, suggesting evidence that the pass rate is lower under the new policy .

A one-sample t-test compares the new policy's average sessions of 40, with a standard deviation of 9, to the standard 43 sessions. The null hypothesis (H0) is that the average number is 43, while the alternative hypothesis (Ha) is that it is fewer than 43. Calculating the t-statistic and using a 5% significance level, if the t-statistic indicates a significant difference, we reject H0. This suggests that the new policy effectively reduces sessions compared to the standard 43 .

We conduct a one-sample z-test for proportions. The null hypothesis (H0) is that the proportion of adult males in Melaka willing to skip events is 70%, similar to the national proportion. The alternative hypothesis (Ha) is that this proportion in Melaka is greater than 70%. From a sample of 676 males, 507 are willing to skip events. Using a 1% significance level, we calculate the z-score based on the sample proportion. Comparing the z-score to the critical z-value, if it falls in the rejection region, we conclude that the proportion is greater in Melaka .

A one-sample z-test for proportions is used here. The null hypothesis (H0) is that the device's effectiveness is at least 70%. The alternative hypothesis (Ha) is that the effectiveness is less than 70%. With 65 out of 100 users quitting, we calculate the z-score for the sample proportion. Using a 0.05 significance level, we compare the z-score to the critical value. If the z-score does not fall within the acceptance region, we accept H0, indicating no evidence against the 70% claim .

To verify the claim of the house cleaning service, we conduct a one-sample t-test. The null hypothesis (H0) is that the mean cleaning time is equal to 2 hours (mean = 2 hours). The alternative hypothesis (Ha) is that the mean cleaning time is less than 2 hours (mean < 2 hours). Given a sample size of 16 with a mean of 1.97 hours and a standard deviation of 0.1 hours, we compute the t-statistic. Using a 0.05 level of significance, we compare the t-statistic to the critical t-value to determine if we reject H0. If the t-statistic is less than the critical value, we conclude that the service can clean in less than 2 hours .

We use a one-sample t-test to determine this. The null hypothesis (H0) states that the mean retail value is RM2.50, while the alternative hypothesis (Ha) is that the mean value is not RM2.50. With a sample mean of RM2.55, a standard deviation of RM0.44, and a sample size of 100, we calculate the t-statistic. At a 0.05 significance level, if the t-statistic falls outside the critical t-value range, we reject H0, indicating evidence that the mean value is different from RM2.50 .

Using a z-test, we test if the sample mean differs from the population mean of 375 hours. The null hypothesis (H0) is that the mean life is 375 hours. The alternative hypothesis (Ha) is that it's different from 375 hours. With a sample mean of 350 hours, a standard deviation of 100 hours, and 64 samples, the z-score is calculated. At a 0.05 significance level, if the z-score is substantially different from the population mean, we reject H0, indicating the mean life is not 375 hours .

Conducting a one-sample z-test for proportions, we test if the Melaka sample proportion is significantly greater than 70%. The null hypothesis (H0) is p = 0.70, and the alternative (Ha) is p > 0.70. With 507 out of 676 surveyed males willing to skip events, we calculate the sample proportion and z-score. At a 1% significance level, if the z-score exceeds the critical value, we reject H0, concluding the proportion in Melaka is greater than 70% .

To evaluate the policy, a hypothesis test is performed. The null hypothesis (H0) is that there is no reduction in the number of counseling sessions. The alternative hypothesis (Ha) is that the new policy reduces the number of sessions. From the study, the mean number of sessions was 40 with a standard deviation of 9, compared to the previous policy average of 43 sessions. Using the 5% significance level, we conduct a one-sample t-test. If the t-statistic indicates a significant reduction, we conclude that the new policy is effective in reducing sessions while retaining the passing rate .

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