Assignment

Submitted by
Saba Fahim Butt
Session
2007-2011
Bachelors in business
administration
Kinnaird College For Women,
Lahore.
Question No. 1

The ages in years of 26 applicants for university lectureship in accounting are”

28 35 25 20 30 27 33 48 32 39 26 31 32 52 34 29 33 37 26 25 28 40 36 30 35 30
Over the years the average age of applicants has been 35.0 years. Based on this sample, test at α=
0.05 whether applicants are getting younger.

SOLUTION:

Step no. 1:

We create the null and alternative hypothesis,

H0 = The average age of applicants is 35 years.

HA = The average age of applicants is greater than 35 years.

H0, u = 35 years

HA, u > 35 years

Step no. 2:

We will now use the spss software to compute the test statistics. The results are as follows:

T-TEST
/TESTVAL=35
/MISSING=ANALYSIS
/VARIABLES=age
/CRITERIA=CI(.9500).
T-Test
[DataSet0]

One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
whether the
applicants are getting 26 32.35 6.997 1.372
younger?
 One-Sample Test
Test Value = 35
95% Confidence Interval of
Sig. (2- Mean the Difference
t Df tailed) Difference Lower Upper
whether the
applicants are getting -1.934 25 .065 -2.654 -5.48 .17
younger?

Step no. 3:

The t test results are interpreted as per the following rules:

Rule no. 1:

We see that whether the t observed is greater or smaller than the t critical value.

In this case the t c.v. is 1.708 (from the table for one tail test). For comparing the tc.v. and tobs value
we take the absolute terms of both the values and through comparision we conclude that:

1.934>1.708

Tobs>tc.v. and thus as per the rules we reject the H0 i.e the age of the applicants is not getting
younger or equal to or less than 35 years.

Rule no. 2:

We compare the p value or the sig value with the significance level. The significance level for this
case is 0.05 or 5%, comparing the values we see that : We will divide the p value by 2 as this is a one
tail t test thus

p value = 0.065/2 = 0.0325

P value < α i.e.

0.0325<0.05

Thus we will reject H0.

INTERPRETATION:

Thus as per the rules and the answers as per the question we reject the null hypothesis i.e. the
statement that applicants are getting younger is false. This means that the average age of the
applicants is greater than 35 years and the applicants are not young now.
Question No.2:

Experience has shown that the number of matches in boxes follow a normal distribution. a
manufacturer claims that an average number of matches in its boxes is 50. a customer purchases a
random sample of a boxes and counts the contents of each box. They were:

49 50 51 46 48 45 52 47 48

Based on this sample, should the customer believe the manufacturer’s claim? α= 0.05

SOLUTION:

Step no. 1:

We create the null and alternative hypothesis,

H0 = The average number of matches in a box is 50.

HA = The average number of matches in a box is not equal to 50.

H0 , u = 50

HA, u = 50

Step no. 2:

We will now use the spss software to compute the test statistics. The results are as follows:

T-Test
[DataSet0] E:\zara\data analysis\t test.sav

One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
boxes have 50
9 48.44 2.297 .766
matches or not?
 One-Sample Test
Test Value = 50
95% Confidence Interval of
Sig. (2- Mean the Difference
t Df tailed) Difference Lower Upper
boxes have 50
-2.031 8 .077 -1.556 -3.32 .21
matches or not?

Step no. 3:

The t test results are interpreted as per the following rules:

Rule no. 1:

We see that whether the t observed is greater or smaller than the t critical value.

In this case the t c.v. is 2.306 (from the table for two tail test). For comparing the tc.v. and tobs value
we take the absolute terms of both the values and through comparision we conclude that:

2.031<2.306

Tobs<tc.v. and thus as per the rules we accept the H 0 i.e the average number of matches in a match
box is equal to 50. As per this rule we accept the manufacturer’s claim.

Rule no. 2:

We compare the p value or the sig value with the significance level. The significance level for this
case is 0.05 or 5%, comparing the values we see that :

P value > α i.e.

0.065>0.05

Thus we will accept H0.

Rule no.3:

We find the upper and lower limits of the confidence interval,

Upper limit = upper value + mean

Upper limit = 0.21 + 48.44

Upper limit = 48.65

Lower limit = Lower value + mean

Lower limit = -3.32 + 48.44

Lower limit = 45.12

Now we see where the value of mean of the sample lies. The mean difference value is -1.556 and it
does not lie within the upper and lower limit and thus we will accept the H0.

INTERPRETATION:

Thus as per the rules and the answers as per the question we accept the null hypothesis i.e. the
statement that average number of matches in boxes is 50 is true.

Question No. 3.

loaves of bread are labeled as having an average net weight of 680 g. a random sample of 9 of these
loaves had the following net weights (in g)

682 675 685 677 670 678 672 680 675

Based on this sample, test at α= 0.05 whether the labeling is correct.

SOLUTION:

Step no. 1:

We create the null and alternative hypothesis,

H0 = The average net weight of bread loaves is 680 g.

HA = The average net weight of bread loaves is not equal to 680 g.

H0 , u = 680

HA, u = 680

Step no. 2:

We will now use the spss software to compute the test statistics. The results are as follows:

T-Test
[DataSet0] E:\zara\data analysis\t test.sav

One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
bread loaves have a
weight of 680 grams 9 677.11 4.755 1.585
or not?
 One-Sample Test
Test Value = 680
95% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
bread loaves have a
weight of 680 grams -1.823 8 .106 -2.889 -6.54 .77
or not?

Step no. 3:

The t test results are interpreted as per the following rules:

Rule no. 1:

We see that whether the t observed is greater or smaller than the t critical value.

In this case the t c.v. is 2.306 (from the table for two tail test). For comparing the tc.v. and tobs value
we take the absolute terms of both the values and through comparision we conclude that:

1.823<2.306

Tobs<tc.v. and thus as per the rules we accept the H0 i.e the average net weight of bread loaves is
equal to 680 g. As per this rule we accept the manufacturer’s claim.

Rule no. 2:

We compare the p value or the sig value with the significance level. The significance level for this
case is 0.05 or 5%, comparing the values we see that :

P value > α i.e.

0.106>0.05

Thus we will accept H0.

Rule no.3:

We find the upper and lower limits of the confidence interval,

Upper limit = upper value + mean

Upper limit = 0.77 + 677.11

Upper limit = 677.88

Lower limit = Lower value + mean

Lower limit = -6.54 + 677.11

Lower limit = 670.57

Now we see where the value of mean of the sample lies. The mean difference value is -2.889 and it
does not lie within the upper and lower limit and thus we will accept the H0.

INTERPRETATION:

Thus as per the rules and the answers as per the question we accept the null hypothesis i.e. the
statement that average net weight of bread loaves is 680 grams is true.

Question No. 4.

historical data indicates that the mean acidity (PH) level of rain in a certain industrial region in the
West Virginia is 5.2. To see whether there has been any recent change in this value, the acidity levels
of 12 rainstorms over the past year have been measured, with the following results:

6.1, 5.4, 4.8, 5.8, 6.6, 5.3, 6.1, 4.4, 3.9, 6.8, 6.5, 6.3

Are these data strong enough at 5% level of significance, for us to conclude that the acidity of the rain
has changed from its historical value?

SOLUTION:

Step no. 1:

We create the null and alternative hypothesis,

H0 = The PH level of rain in west Virginia is 5.2.

HA = The PH level of rain in west Virginia is not equal to 5.2.

H0 , u = 5.2

HA, u = 5.2

Step no. 2:

We will now use the spss software to compute the test statistics. The results are as follows:

T-Test
[DataSet0] E:\zara\data analysis\t test.sav
 One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
whethe the PH level
have changed from 10 5.520 .9438 .2984
5.2

One-Sample Test
Test Value = 5.2
95% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
whether the PH level
have changed from 1.072 9 .312 .3200 -.355 .995
5.2

Step no. 3:

The t test results are interpreted as per the following rules:

Rule no. 1:

We see that whether the t observed is greater or smaller than the t critical value.

In this case the t c.v. is 2.262 (from the table for two tail test). For comparing the tc.v. and tobs value
we take the absolute terms of both the values and through comparision we conclude that:

1.072<2.262

Tobs<tc.v. and thus as per the rules we accept the H 0 i.e the PH level of rain in west Virginia is 5.2.
As per this rule we accept the claim.

Rule no. 2:

We compare the p value or the sig value with the significance level. The significance level for this
case is 0.05 or 5%, comparing the values we see that :

P value > α i.e.

0.312>0.05

Thus we will accept H0.

Rule no.3:

We find the upper and lower limits of the confidence interval,

Upper limit = upper value + mean

Upper limit = 0.995 + 5.520

Upper limit = 6.515

Lower limit = Lower value + mean

Lower limit = -0.355 + 5.520

Lower limit = 5.165

Now we see where the value of mean of the sample lies. The mean difference value is 0.3200 and it
does lie within the upper and lower limit and thus we will accept the H0.

INTERPRETATION:

Thus as per the rules and the answers as per the question we accept the null hypothesis i.e. the
statement that PH level of rain in west Virginia is 5.2 is correct.

Question No.5

A manufacturer claims that the mean life of the batteries it produces is at least 250hours of use. A
sample of 20 batteries yielding the following data:

237, 254, 255, 239, 244, 248, 252, 255, 233, 259, 236, 232, 243, 261, 255, 245, 248, 243, 238, 246

a) Are these data consistent at the 5% level of significance, with the claim of the manufacturer?

b) What about 1%?

SOLUTION: (part a)

Step no. 1:

We create the null and alternative hypothesis,

H0 = The mean life of batteries is 250 hours.

HA = The mean life of batteries is greater than 250 hours.

H0 , u = 250 hours

HA, u > 250 hours

Step no. 2:

We will now use the spss software to compute the test statistics. The results are as follows:

T-Test

[DataSet0] E:\zara\data analysis\t test.sav

One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
tha batteries have
20 246.15 8.665 1.938
250 use hours?

One-Sample Test
Test Value = 250
95% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
tha batteries have 250
-1.987 19 .062 -3.850 -7.91 .21
use hours?

Step no. 3:

The t test results are interpreted as per the following rules:

Rule no. 1:

We see that whether the t observed is greater or smaller than the t critical value.

In this case the t c.v. is 1.729 (from the table for one tail test). For comparing the tc.v. and tobs value
we take the absolute terms of both the values and through comparision we conclude that:

1.987>1.761

Tobs>tc.v. and thus as per the rules we reject the H0 i.e the mean time of batteries produced is
greater than 250 hours.
Rule no. 2:

We compare the p value or the sig value with the significance level. The significance level for this
case is 0.05 or 5%, comparing the values we see that : We will divide the p value by 2 as this is a one
tail t test thus

p value = 0.062/2 = 0.031

P value < α i.e.

0.031<0.05

Thus we will reject H0.

INTERPRETATION:

Thus as per the rules and the answers as per the question we reject the null hypothesis at the
significance level of 0.05 and 5% i.e. the mean life of batteries produced is not 250 hours.

SOLUTION (part b):

Step no. 1:

We create the null and alternative hypothesis,

H0 = The mean life of batteries is 250 hours.

HA = The mean life of batteries is greater than 250 hours.

H0 , u = 250 hours

HA, u > 250 hours

Step no. 2:

We will now use the spss software to compute the test statistics. The results are as follows:

T-Test

[DataSet0] E:\zara\data analysis\t test.sav

One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
tha batteries have
20 246.15 8.665 1.938
250 use hours?
 One-Sample Test
Test Value = 250
99% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
tha batteries have 250
-1.987 19 .062 -3.850 -9.39 1.69
use hours?

Step no. 3:

The t test results are interpreted as per the following rules:

Rule no. 1:

We see that whether the t observed is greater or smaller than the t critical value.

In this case the t c.v. is 1.729 (from the table for one tail test). For comparing the tc.v. and tobs value
we take the absolute terms of both the values and through comparision we conclude that:

1.386<1.761

Tobs<tc.v. and thus as per the rules we accept the H0 i.e the mean time of batteries produced is 250
hours.

Rule no. 2:

We compare the p value or the sig value with the significance level. The significance level for this
case is 0.05 or 5%, comparing the values we see that : We will divide the p value by 2 as this is a one
tail t test thus

p value = 0.187/2 = 0.0935

P value > α i.e.

0.0935>0.05

Thus we will accept H0.

INTERPRETATION:

Thus as per the rules and the answers as per the question we accept the null hypothesis i.e. the
mean life of batteries produced is 250 hours.