Hypothesis Testing Solved Questions

b. Is this a single or double tailed test?

c. What’s is the p-value and use α =0.05 to derive your conclusion.

d. Looking at the critical value, how can you derive the conclusion.

e. Do you think you need to consider a 1% level of significance test here?

The p-value is 0.0808 > 0.05, so the null hypotheses cannot be rejected. The population mean is greater or equal to 55.

In a single tailed test at α =0.05, the Z value can be calculated using Norm.inv for 0.05.

Norm.inv (0.05, 0,1) = 1.65

The Z value is 1.65. Since the sample Z value is 1.40 which is less than 1.65, the null cannot be rejected.

No. 1%  level of significance test does not matter since the p-value is greater than α =0.05.

2. In a country, the mean number of hours for watching television per week is 12.5 hours.  However recently, a study conducted in the northern part of this country with a sample size of 256 people found the mean hours per week for watching television to be 13.15 hrs. Assume population standard deviation to be 2.5 hrs.

• Design a hypothesis test for the above problem to test whether the claim that the mean hours per week for watching the television is more in the northern part than the national average? Test at 0.05 level of significance.
• Test at α =0.01. What is your conclusion?

Check out the video under Materials section for the solution for the above problem on hypothesis testing.