SEM 2 STATS

{FOR ECO H/BBE}

[B.A ECO{H}, M.A ECO, Academician, Budding Economist, CEO &

FOUNDER OF ECONOMICS FOREVER, Media Person, Delhi University
Alumni, Youth Speaker, Political – Election – Budget Analyst]
 Assignment 1 : Hypothesis
(Part 1)
Q1. A sample of 400 items is taken from population whose mean as well as variance is 4. If sample
mean is 4.5, can the sample be regarded as truly random sample?

Q2. The breaking strength of cables produced by a manufacturer having mean 1800 lbs and SD =
200 lbs. By the new technique in the manufacturing process it is claimed that breaking strength can
be increased. To test this claim sample of 64 cables is tested and found that mean of breaking
strength is 1850 lbs. Can we support this claim:-

a) 5% LOS

b) 1% LOS

Q3. Suppose it is known from last experience that SD = 100 Kg. Packages of sugar made by sugar
mill is 2kg. To check whether packaging is under control on a given day, random sample of 64
packages is selected and mean weight is 99kg. Would you accept or reject null hypothesis μ = 100
against alternative μ ǂ 100 @ 1% LOS.

Q4. Suppose we would like to determine if typical amount spent by a customer for dinner at a new
restaurant is more than $20. A sample of 49 customers was selected and average amount spent to
be $22.60. Assuming SD is known $2.50. At 2% LOS would you conclude the typical amount spent
per customer is more than $20?

Q5. A radio shop sells on an average, 200 radios per day with SD of 50 Radios. After an
Advertisement campaign, the management will compute the average sales for next 25 days to see
whether an improvement is occurred.

a) State the Hypothesis formulation

b) Test Hypothesis @ 5% LOS, if x̄ = 216 Radios

c) How large must be x̄ In order that null hypothesis is rejected @ 5% LOS.

Q6. In a report prepared by Economic Research Dept. of a bank the manager maintains that average
annual family income in a city in $48432. What do you conclude about Validity of report if sample of
400 families shows income of $48574, with SD of 2000.

Q7. In the early 90's, Sony introduced 32 bit Play Station in Video Game Market. Management hoped
that new product would increase sales above $283 Mn. In previous decade it was observed that,
monthly sample of 40 recorded mean of $297 Mn. Assume SD of $97 Mn. Test @ 1% LOS.

Q8. A survey of students shows that students on an average spend more than Rs. 75 on
entertainment. If you find evidence to support this claim, you can use it to request for additional
money from home. From sample of 100 Students, mean spending was Rs. 80.23 with SD 45.67. At
5% LOS, Test whether you can ask for money or not.
Q9. A sample of 100 tyres is taken from a lot. Mean life of tyre is 39350 kms with SD of 3260km.
Population of lot is having mean life of 40,000 km. Does this mean value contradicted @ 1% LOS.
Also obtain 90%. Confidence limit within which mean life of tyre is expected to lie.

Q10. Car running on normal petrol are known to have an average engine life of 1,20,000 km with SD
15000 km. A Random Sample of 100 cars using Premium Petrol increases engine life with average
of 122000 km. Test whether premium petrol increases engine life. Also, find highest value of ɑ that
allows to conclude engine left improves with use of premium petrol.

Q11. A random sample of 40 items gives mean of 4.45 and Variance 4. Can it be reasonable to say
sample drawn from population is having mean 4.

Q12. Daily sales figures of 40 shopkeepers were collected and average sales and SD found to be Rs
528 and Rs 60.0. Is the assertion that daily sales on average is Rs 400 only. Contradict at 5% LOS.

Q13. A Telephone company provides long distance telephone service in an area. Acc to company's
records the average length of all long distance calls placed through company in 2010 was 12.44
minutes. The company management wanted to check if mean length of long distance calls is vary
from 12.44 minutes. A sample of 150 calls produced mean of 13.71 minutes with SD of 2.65
minutes. Using 2% LOS, State your conclusion.

Q14. A random sample of boots, worn by 36 soldiers in a desert region showed average life of 1.08
years with SD = 0.6 years. Under normal conditions, boots are known to have an average life of 1.28
years, at 10%. Los, use of boots in desert causes mean life of boots decrease. What will be your
conclusion @5% LOS

Q15. From long experience with a process for manufacturing an alcoholic beverage it is known that
yield is normally distributed with mean of 500 and SD=96. For a modified process, the yield is 535
units for a sample of 50. Does modified process increase the yield? Find P value.

Q16. In a quality control situation, the mean weight of objects produced is suppose to be 16 ounces
with SD =0.4 ounce. A random sample of 70 objects yield mean weight of 15.8 ounce. Is it
reasonable to assume that production Standards are maintained. Find P Value.

Q17. A company manufacturing tyres claiming that they last on an average 36000 miles. 100 tyres
randomly selected and tested, observed that average life of 35600 miles with SD = 2100 miles. Find
P value:- a) 5% b) 1%.

Q18. Assuming average marks of du students is greater than 70. A sample of 50 students of SRCC
college is selected and reject null Hypothesis when sample mean is more then 75. Overall, SD of Du
students is 25. Find Probability of Type I Error.

Q19. Assuming that a new toothpaste company make a claim that the adding water to toothpaste
protects against Cavities. So in order to check whether the claim by the company is correct or not
by using hypotheses testing, one of Statistician, took sample of 4 persons and population mean
value are μ= μo whose overall SD is 2. Find Probability of Rejecting Ho when x̄ =μo+2.

Q20. Assuming that on an average hours that ladies used to spend on watching TV in a day is 6
hours. A sample of 35 families is selected and Reject null Hypothesis when sample mean is greater
than 10. Overall SD is 24. Find Type 1 Error.

Q21. LED Producing company reveal a fact that their bulb will going to lost more than 50000 hours
on an average. A sample of 20 families was taken and Reject Ho when sample mean is greater than
56000. Overall SD is 6000 hours. Find Type 1 Error.

Q22. Assuming, average number of seats win by an election committee is 250. A sample of 100 item
is selected. Reject Ho if sample mean greater than 251.6 or less than 248.04. Assuming SD=10. Find
Probability of Type I error.

Q23. Suppose that we are having sample of 16 from a population where SD=8 Accept Ho/ μ=76
@5%. Null Hypothesis Ho:-μ=75 against alternate H1:- μǂ75. Find Probability of Type II Error and
Power of test also.

Q24. Suppose that we are having a sample of 36 whose σ =21 null Hypothesis Ho:-μ=50 against
alternate H1:- u<50. Find Probability of Type II Error. (Accept Ho/μ=43] at 5%. Find power of Test
also.

Q25. Suppose that we want to test null hypothesis that mean of population with σ² = 1 is μo against
alternate hypothesis that is μ1.Where μ1>μ0. Find value of k such that x̄ >k. Provides critical region
ɑ=5% for random Sample n.

Q26. Let X1 X2 constitutes a random sample with σ² = 1. If Null Hypothesis μ= μo to be rejected in

favor of alternate hypothesis μ=μ₁>μo when x̄ > μo+1. Find size of Critical Region.
Assignment 1: Hypothesis (Part 2)
Q1) An experiment is performed to determine whether the average nicotine
content of one kind of cigarette exceeds that of another kind by 0.20
milligrams. If n1 = 50 cigarettes of the 1st kind had an average nicotine content
of X̅ 1 = 2.61 milligrams with a standard deviation of s 1 = 0.12 milligram,
whereas n2 = 40 cigarettes of the other kind had an average nicotine content of
X̅ 2 = 2.38 milligrams with a standard deviation of s 2 = 0.14 milligram, test the
null hypothesis µ1 - µ2 = 0.20 against the alternative hypothesis µ1 - µ2 ≠ 0.20 at
the 0.05 level of significance. (z = 1.08; Do not Reject H0)
Q2) A consulting firm wants to decide at the 5% level of significance if the
salaries of construction workers differ between Bombay and Delhi. A random
sample of 100 construction workers in Bombay has an average weekly salary of
Rs.400 with standard deviation of Rs.100. In Delhi a random sample of 75
workers has an average weekly salary of Rs.375 with standard deviation of
Rs.80. Is there a significant difference between salaries of construction workers
in Bombay and Delhi? (Do not reject H0, Z = 1.837)
Q3) An examination was given to two classes, each consisting of 49 students. In
the first class, the mean marks were 74 with a standard deviation of 8; in the
second class, the mean marks were 78 with a standard deviation of 9. Is it
reasonable to regard the two classes as having been obtained from two normal
populations with equal means? Test your hypothesis at 5% and 1% levels of
significance. (Z = -2.33, reject H0 at 5%, do not reject H0 at 1% Level)
Q4) The admission entrance test of two groups of boys and girls gave the
following information.
Mean Score Standard Number
Deviation
Girls 75 10 100
Boys 70 12 200

On the basis of the above information would you conclude that mean scores of
boys and girls are statistically significant? (Z = 3.81, reject H0)
Q5) In a college entrance examination taken by 2000 students, the average
marks scored by 36 randomly selected boys was 72 with standard deviation of
8, while the average score of a sample of 36 girls was 75 with standard
deviation of 10. Test the hypothesis that girls fare better in competitive
examinations. (Z = -1.405, do not reject Ho)

SAMDISH D SHARMA - 9811042456

Q6) The average number of articles produced by two machines per day is 200
and 250 with standard deviation of 20 and 25 respectively, on the basis of
records of 25 days production. Can we regard both machines equally efficient?
(t = -7.65, reject H0)
Q7) Assume that the population of both the Test A and B below are
approximately normal with same or equal standard deviations. Is the mean of
Test A less than the mean of Test B. (compare at 5% level of significance). (t = -
1.0046, do not reject Ho)
Sample Mean Sample S.D. Sample size
Test A (x1) 120 10 6
Test B (x2) 125 9 10
Q8) The marks of students in two groups were obtained as
I 18 20 36 50 49 36 34 49 41
II 29 28 26 35 30 44 46

Test whether the groups were identical. Given t14 = 2.14 at 5% level of
significance. (t = 0.6920, do not reject Ho)
Q9) 10 plots of land are treated with fertilizer A and 12 with fertilizer B. The
yield of first plot with mean is 6 bushels with standard deviation of 0.03
bushels. The yield of second plot have mean of 5.95 bushels with standard
deviation of 0.04 bushels. At 1% level of significance is there a significant
difference in effects of the fertilizers. (t = 3.346, reject Ho)
Q10) In a big city 325 men out of 600 men were found to be smokers. Does this
information support the conclusion that the majority of men in this city are
smokers? (Z = 2.04, Reject Ho)
Q11) In sample 400 parts manufactured by a factory, the number of defective
parts was found to be 30. The company however claimed that at most 5% of
their product is defective. Is the claim tenable? (Z = 2.27, Reject Ho)
Q12) A company has the head office at Kolkata and a branch at Mumbai. The
personnel director wanted to know if the workers at the two places would like
the introduction of a new plan of work and a survey was conducted for this
purpose. Out of a sample of 500 workers at Kolkata, 62% favoured the new
plan. At Mumbai, out of a sample of 400 workers, 41% were against the new

SAMDISH D SHARMA - 9811042456

plan. Is there any significant difference between the two groups in their
attitude towards the new plan at 5% level? (Z = 0.9155; Do not reject Ho)
Q13) The subject under investigation is the measure of dependence of Tamil
on words of Sanskrit origin. One newspaper article reporting the proceedings
of the constituent assembly contained 2025 words of which 729 words were
declared by literacy critic to be of Sanskrit origin. A second article by the same
author describing atomic research contained 1600 words of which 640 words
were declared by the same critic to be of Sanskrit origins. Assuming that simple
sampling condition hold estimate the limits for the proportion of Sanskrit
words in the writer’s vocabulary and examine whether there is any significant
difference in the dependence of this writer on words of Sanskrit origin in
writing the two articles. (Take α = 0.05). (Z = -2.469, Reject Ho)
Q14) In two large populations there are 30% and 25% respectively of fair-
haired people. Is this difference likely to be hidden in samples of 1200 and 900
respectively from the two populations? (Z = 2.55, Reject Ho)
Q15) A sample of 20 observations gave a standard deviation 3.72. Is this
compatible with the hypothesis that the sample is from a normal population
with the variance 4.35? (x2 = 63.62; Reject Ho)
Q16) A random sample of size 20 yields a mean of 40 and variance of 25. Test
the hypothesis that the population S.D. is 8.
Q17) In comparing the variability of the tensile strength of two kinds of
structural steel, an experiment yielded the following results: n1 = 13; 𝑠21= 19.2;
n2 = 16 and 𝑠22 = 3.5, where the units of measurement are 1000 pounds per
square inch. Assuming that the measurements constitute independent random
samples from two normal populations, test the null hypothesis 021= 022against
the alternative 02 ≠ 02 at the 2% level of significance. (f value =
1 2
5.49; Reject Ho)
Q18) On the basis of data reported in the article “Serum Ferritin in an elderly
population”, the authors concluded that the Ferritin distribution in the elderly
had a smaller variance than the younger adults. For a sample 28 elderly men,
the sample SD of Serum Ferritin was s1 = 52.6 for 26 young men, the sample SD
was s2 = 84.2. Does this data support the conclusion as applied to men? (F
value = 2.56; Reject Ho)

SAMDISH D SHARMA - 9811042456

Q19) A quality control supervisor for an automobile manufacturer is concerned
with uniformity in the number of defects in cars coming off the assembly lines.
If one assembly line has significantly more variability in the number of defects,
then changes have to be made. The supervisor has collected the following
data:
No. of defects Assembly Line (A) Assembly line (B)
Mean 10 11
Variance 9 25
Sample size 20 16

Does assembly line B have significantly more variability in the number of

defects? Test at the 0.05 significance level. (F – value = 2.778; Reject Ho, Left
Tailed Test)
Q20) For two populations thought to have the same variance the following
information was found. A sample of 10 form population 1 exhibited a sample
variance of 3.75, and a sample variance of 10 from population 2 had a variance
of 5.38.
a) Calculate the F – ratio for the test of equality of variances (F = 2.67)
b) Find the critical F value for the upper tail (3.01)
c) Find the corresponding F value for the lower tail (0.39)
d) State the conclusion of your test (Do not Reject)
Q21) The Average Blood Pressure B for a group of 10 patients was 77.00
mmHg. The Average Blood Pressure A after they put on a special diet was
75.00 mmHg. Carry out a statistical Test to assess whether the special diet
reduce blood pressure. ∑(B-A)2 = 68.0. (T = 3.59, Special Diet Does Reduce
the Blood Pressure)
Q22) In order to increase the efficiency with which employees in a certain
organisation can carry out a task, 5 employees are sent on a training course.
The time in seconds to carry out the task both before and after the training
course is given below for the 5 employees:
A B C D E
Before 42 51 37 43 45
After 38 37 32 40 48
Test whether the training Course has had the desire effect. (t = 1.32, Training
course does not increase employee’s efficiency)

SAMDISH D SHARMA - 9811042456

 SEM 2 STATS {FOR
ECO H/BBE}

[B.A ECO{H}, M.A ECO, Academician, Budding Economist, CEO &

FOUNDER OF ECONOMICS FOREVER, Media Person, Delhi University
Alumni, Youth Speaker, Political – Election – Budget Analyst]