HYPOTHESES TESTING

One-Sample Tests
1. A child welfare officer asserts that the mean sleep of young babies is 14 hours a day. To verify
his claim, a sample of 64 young babies was taken and their mean sleep was found to be 13
hours 20 minutes, with a standard deviation of 3 hours. Test his claim at 5% level of
significance.
2. The Grocery Retailers Association of South Delhi (GRASD) believes that the average amount
spent on groceries by shoppers on each visit to a supermarket is ₹1,750. To test this belief, the
association commissioned Market Research Bureau to conduct a survey among a random
sample of 360 grocery shoppers at supermarkets in the area.
Based on the survey, the average value of grocery purchases was ₹1,824. Assume that the
population of grocery purchase values is normally distributed with a standard deviation, 𝜎, of
₹675. Can GRASD conclude that grocery shoppers spend ₹1,750, on average, on each visit to
a supermarket? Conduct a test at 5% level of significance.
3. A manufacturer of flashlight batteries claims that the mean life of his product will exceed 30
hours. A company is willing to buy a very large quantity of batteries if the claim is true. A
random sample of 36 batteries is tested and it is found that the sample mean is 34 hours, with
a standard deviation of 5 hours. Would the company buy?
4. The average distance of stopping a certain make of a car, while it is travelling at 30 mph, is 65
feet. The engineering department of the company has designed a new brake system thought to
be more effective. To test it, the new brake system is installed in 64 cars. Tests show that the
average distance of stopping the cars at a speed of 30 mph is 63.5 feet, with a standard deviation
of 4 feet. Does the difference of 1.5 feet prove that the new brake system is better than the old
one? Test at 𝛼 = 0.05. How would you conclude at 𝛼 = 0.01 if the average distance was found
to be 63.9 feet instead with same S.D.?
5. A sample of 10 measurements of the diameter of a sphere gives the mean of 4.08 inches with a
standard deviation of 0.05 inches. At 𝛼 = 0.05, are these results consistent with the hypothesis
that the manufacturing process is set to produce diameters with 𝜇 = 4 inches?
6. A drug manufacturer claims that their new drug causes faster red cell build up in anaemic
persons than the drug currently used. A team of doctors tested the drug on 6 persons and
compared the results with current build up factor of 8.3. The six people had factors of 9.3, 7.8,
8.1, 8.3, 8.7, and 9.7. Test the claim of the manufacturer at 𝛼 = 0.01.
7. In a sample of 500 people in a state, 200 are tea drinkers and the rest are coffee drinkers. Can
we conclude that tea and coffee are equally popular in the state at 1% level of significance?
8. In a sample of 1000 births, 53% were males. Can it be asserted that the sex ratio of the births
is 1/2? Take 𝛼 = 0.05.
Two-Sample Tests
9. A man buys 50 electric bulbs of Philips and 50 bulbs of HMT. He finds that the Philips bulbs
gave an average life of 1,500 hours with a standard deviation of 60 hours. The HMT bulbs gave
an average life of 1,524 hours with a standard deviation of 80 hours. Is there significant
difference between the mean lives of the two brands? Test at 𝛼 = 0.05.
10. Intelligence tests on two groups of boys and girls gave the following results:
Mean Standard Deviation Group Size
Girls 75 15 150
Boys 70 20 250
(a) Is there a significant difference in the mean scores obtained by two groups at 𝛼 = 0.05?
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 (b) Test at 𝛼 = 0.05 if the mean scores of girls are higher than the mean scores of boys.
Two Sample Test - Small Samples
11. A financial analyst asked the following question: 'Is the average earnings yield of
manufacturing companies the same as the average earnings yield of retailing companies?" To
examine this question, the analyst randomly sampled 12 manufacturing companies and 14
retailing companies. The descriptive statistics from each sample of companies are as follows:
Manufacturing Retailing
Sample mean (%) 8.45 10.22
Sample standard deviation 3.32 4.14
Sample size 12 14
Formulate the null and alternative hypothesis and conduct a hypothesis test for the difference
between two means to test the null hypothesis at the 5% level of significance. What conclusion
can be drawn?
12. A financial analyst wished to establish whether the mean ROI% (return on investment per cent)
of financial companies is greater than the mean ROI% of manufacturing companies. The
financial analyst randomly sampled 14 financial companies and found their sample mean ROI%
to be 18.714% with a sample standard deviation of 9.645%. For a random sample of 15
manufacturing companies, the sample mean ROI% was 15.125% with a sample standard
deviation of 8.823%.
Can the financial analyst conclude that financial companies have a higher ROI%, on average,
than manufacturing companies? Conduct a hypothesis test at the 5% level of significance.
13. A random sample of 12 home internet users was selected from Telkom's database and their
monthly internet usage (in hours) was identified for March last year (period 1) and again for
March this year (period 2). The data are shown here.
User: A B C D E F G H I J K L
Period 1: 70 85 64 83 68 91 65 78 96 92 86 73
Period 2: 72 84 68 88 68 95 64 76 102 94 89 75
Telkom's internet marketing manager asked the question: 'Is internet usage increasing?'
Conduct a hypothesis test, at the 5% significance level to determine if the monthly internet
usage per user has increased significantly from period 1 (March last year) to period 2 (March
this year).
Two Sample Test – Proportions
14. Of the 500 units selected from the output of a factory, 4% are found to be defective, while 1.300
units of the same product selected from the output of another factory yields the percentage
defectives to be 3%. Can we conclude that the first factory produces more defectives than the
second? Take 𝛼 = 0.05.
15. After a recent AIDS awareness campaign, the Department of National Health commissioned a
market research company to conduct a survey on its effectiveness. Their brief was to establish
whether the recall rate of teenagers differed from that of young adults (20-30 years of age).
The market research company interviewed a random sample of 640 teenagers and 420 young
adults. It was found that 362 teenagers and 260 young adults were able to recall the AIDS
awareness slogan of ‘AIDS: don't let it happen’. Test at the 5% level of significance, the
hypothesis that there is an equal recall rate between teenagers and young adults (i.e., that the
campaign was equally effective for both groups).

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