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Statistics



                      Notes         Remarks:

                                    1.   If the manufacturer claims that the average mileage is more than 40 kms/litre rather than
                                         equal to 40 kms/litre, we have to use a one tailed test. Now we shall test H  :  = 40 against
                                                                                                    0
                                                                              X 
                                                                                -
                                         H  :  > 40 and z would be defined as  z =  .  Since this value is also equal to 4.47
                                           a          cal                 cal
                                                                             s / n
                                         and lies in the critical region, we reject at 5% level of significance. This implies that the
                                         claim of the manufacturer may be taken as correct.
                                    2.   In one tailed tests the alternative hypothesis is expressed as a strict inequality and the null
                                         hypothesis as a weak inequality or simply equality.
                                    3.   The decision rule can also be specified in terms of prob or  p-value of the observed sample
                                         result. The p-value is the smallest level of significance at which the null hypothesis can be
                                         rejected. We define p-value

                                                         æ    X  ö
                                                               -
                                                      =  2P z ³    ÷  , for a two tailed test,
                                                         ç
                                                         è   s / n ø
                                                        æ   X  ö
                                                              -
                                                      =  P z ³    , when H  : m > m  and
                                                        ç è  s / n ø ÷    a     0
                                                              -
                                                        æ   X  ö
                                                      =  P z £    , when H  : m < m
                                                        ç        ÷        a     0
                                                        è   s / n ø
                                         The decision rule is : If p-value < , reject H .
                                                                            0
                                         In the above example p -value is approximately equal to zero when H  is either   40 or
                                                                                                 a
                                          > 40, therefore H  is rejected. However, if H is taken as  < 40, the p -value is almost
                                                         0                     a
                                         equal to unity  and consequently H would be accepted.
                                                                      0
                                    4.   As per the central limit theorem, even if the parent population is not normal, the sampling
                                         distribution of z will be approximately normal when n > 30.

                                           Example 13: A filling machine at a soft drink factory is designed to fill bottles of 200 ml
                                    with a standard deviation of 10 ml. A sample of 50 bottles was selected at random from the filled
                                    bottles and the volume of soft drink was computed to be 198 ml per bottle. Test the hypothesis
                                    that the mean volume of soft drink per bottle is not less than 200 ml.
                                    Solution.
                                    Here n > 30, therefore, the sampling distribution of mean volume of soft drink per bottle will be
                                    normal.
                                    We have to test H  :  ³ 200 against H  :  < 200.
                                                   0              a
                                    It is given that  X =  198  and s = 10.


                                                                    -
                                                          X     198 200
                                                            -
                                    Thus, the test static is  z =  0  =  = -  1.41
                                                       cal
                                                          s / n   10/ 50
                                    Since this value is greater than  - 1.645,  z  lies in the acceptance region.  Hence, there  is no
                                                                      cal
                                    evidence against H at 5% level of significance.
                                                    0


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