T-Test Tutorial
T-Test Tutorial
EXAMPLE 1
A random sample of 50 sales invoices was taken from
a large population of sales invoices. The average value
was found to be Rs. 2000 with a standard deviation of
Rs. 540. Find a 90% confidence interval for the true
mean value of all the sales.
EXAMPLE 2
During the economic boom, the average monthly income of
software professionals touched Rs. 75,000. A researcher is
conducting a study on the impact of economic recession in
2008. The researcher believes that the economic recession may
have an adverse impact on the average monthly salary of
software professionals. For verifying his belief, the researcher
has taken a random sample of 20 software professionals and
computed their average income during the recession period. The
average income of these 20 professionals is computed as Rs.
60,000. The sample standard deviation is computed as Rs. 3000.
Use α = 0.10 to test whether the average income of software
professionals is Rs. 75,000 or it has gone down as indicated by
the sample mean.
EXAMPLE 3
Royal Tyres has launched a new brand of tyres for tractors
and claims that under normal circumstances the average
life of the tyres is 40,000 km. A retailer wants to test this
claim and has taken a random sample of 8 tyres. He test the
life of the tyres under normal circumstance. The results
obtained are presented in table below. Use α = 0.05 for
testing of hypothesis.
Tyres 1 2 3 4 5 6 7 8
Employees 1 2 3 4 5 6 7 8 9 10