Hypothesis Testing for

One Population
Parameter
Proportion | Mean | Variance

Presented by:
Mary Grace C. Agas
Sherylline F. Cano

Professor:
Dr. Melvin Vidar

Discussion Outline:
Definition of statistical hypothesis and hypothesis testing
Two types of hypotheses
Left, right and two tails
Type 1 and Type II errors
P-values and Rejection Region
Hypothesis Testing Procedure
Hypothesis Test for a Proportion
Hypothesis Test for a Mean
Hypothesis Test for Variance

What is Hypothesis Testing?

A statistical hypothesis is an assumption about a
population parameter.
Hypothesis testing refers to the formal procedures
used by statisticians to accept or reject statistical
hypotheses.
Thus, the major purpose of hypothesis testing is to
choose between two competing hypothesis about
the value of a population parameter.

Two types of statistical

hypotheses
Null
hypothesis
Null hypothesis is denoted by H0 and is assumed to be
true unless there is strong evidence to the contrary.

Alternative
hypothesis
Alternative hypothesis is denoted by HA or H1 . This is a
theory that contradicts the null hypothesis and this is
often called research hypothesis.

Determine the null and alternative

hypotheses

Suppose you work for a company that produces cooking pots with an
average life span of seven years. To gain a competitive advantage, you
suggest using a new material that claims to extend the life span of the pots.
You want to test the hypothesis that the average life span of the cooking
pots made with this new material increases.
1) Write the null and alternative hypotheses.

Answer:
H0: The average life span of the new cooking pot is 7Hyears.
0: =
7
H1: The average life span of the new cooking pot is more thanH7
>
1: years.
7

Determine the null and alternative

hypotheses
Suppose you want to find out if the mean number of cars rented is less
than 60 per day. Write the null and alternative hypothesis.
Answer:
H0: The mean number of cars rented is 60 per H0: = 60
day.
H1: The mean number of cars rented is less than 60 H1: < 60
per day.

Determine the null and alternative

hypotheses
Suppose you want to find out if the average speed that people drive on
highway 50 is different than 40 mph. Write the null and alternative
hypotheses.
Answer:
H0: The average speed that people drive on highway 50 is H
40
= 40
0: mph.
H1: The average speed that people drive on highway 50 is notH40
mph.
40
1:

Left, Right and Two Tails

Left Tailed Hypothesis
A statistical test in which H1 specifies that the population lies entirely
below the value specified in H0. H : = 60; H : < 60
0

Right Tailed
Hypothesis
A
statistical test

in which H1 specifies that the population lies entirely

above the value specified in H0. H : = 7; H : > 7
0

Two Tailed Hypothesis

An alternative hypothesis that specified that the parameter can lie on
either side of the value specifiedHby:
H0=
. 40; H : 40
0

Type I and Type II Errors

Type I Error
Rejecting H0 when H0 is true. P(Type I) =
The probability of committing a Type I error is called the significance level.
This probability is also called alpha, and is often denoted by .

Type II Error
Failing to rejecting H0 when H0 is false. P(Type II) =
1-
The probability of committing a Type II error is called Beta, and is
often denoted by .
The probability of not committing a Type II error is called the Power

Implications of Type I and Type II

Errors
Suppose a hypothesis is done to see if a proposed
vaccination for HIV is effective in reducing the chance of
a person getting infected.
Type I: Go through the expense and hassle of vaccinating everyone but
the vaccine does not work
Type II: Disapproval of the vaccination but the vaccination works.

Decision Rules
P-value. The strength of evidence in support of a null hypothesis is
measured by theP-value.
Region of acceptance. Theregion of acceptanceis a range of
values. If the test statistic falls within the region of acceptance, the
null hypothesis is not rejected. The region of acceptance is defined
so that the chance of making a Type I error is equal to the
significance level.
The set of values outside the region of acceptance is called theregion of rejection. If
the test statistic falls within the region of rejection, the null hypothesis is rejected. In
such cases, we say that the hypothesis has been rejected at the level of significance.

P-Value
The probability that if H0 is true, and a sample is taken
with the same sample size, then the result will be at least
as extreme as the result obtained from our sample.

P-Value Example
A hypothesis test was conducted with n = 200 students
to see if more than 70% college students gain weight in
their first year of college (H0: p = 0.7, H1: p > 0.7). The
sample proportion was found to .76 and the P-Value
was 0.03. Then if the proportion is really 0.7 and if
many sample size 200 students are taken, 3% of these
samples will produce a sample proportion at least as
large as .76.

Rejection Region
The region under the z (or t) graph such that a test
statistic in that area will result in H0 being rejected (H1
accepted). A test statistic outside of that region will
result in failing to reject H0.

Rejection Region Examples

Left Tailed Test

Right Tailed Test

Two Tailed Test

Hypothesis Tests

A formal process to determine whether to reject a null hypothesis, based on

sample data. This process, calledhypothesis testing, consists of four steps.
State the hypotheses. This involves stating the null and alternative
hypotheses. The hypotheses are stated in such a way that they are mutually
exclusive. That is, if one is true, the other must be false.
Formulate an analysis plan. The analysis plan describes how to use sample
data to evaluate the null hypothesis. The evaluation often focuses around a
single test statistic.
Analyze sample data. Find the value of the test statistic (mean score,
proportion, t-score, z-score, etc.) described in the analysis plan.

Formulate an analysis plan

Significance level. Often, researchers choose significant levelsequal to
0.01, 0.05, or 0.10; but any value between 0 and 1 can be used.
Test method. Typically, the test method involves a test statistic and a
sampling distribution. Computed from sample data, the test statistic might
be a mean score, proportion, difference between means, difference between
proportions, z-score, t-score, chi-square, etc. Given a test statistic and its
sampling distribution, a researcher can assess probabilities associated with
the test statistic. If the test statistic probability is less than the significance
level, the null hypothesis is rejected.

Analyze sample data

Test statistic. When the null hypothesis involves a mean or proportion, use either of the
following equations to compute the test statistic.
Test statistic = (Statistic - Parameter) / (Standard deviation
Test statistic = (Statistic - Parameter) / (Standard error of statistic)

of

statistic)

whereParameteris the value appearing in the null hypothesis, andStatisticis the point
estimateofParameter. As part of the analysis, you may need to compute the standard
deviation or standard error of the statistic.
When the parameter in the null hypothesis involves categorical data, you may use a chisquare statistic as the test statistic. Instructions for computing a chi-square test statistic are
presented in the lesson on the chi-square goodness of fit test.

P-value. The P-value is the probability of observing a sample statistic as extreme as the
test statistic, assuming the null hypotheis is true.

Hypothesis Testing Procedure

Step 1
Determine the hypotheses in words
Write H0 and H1 in symbols

Step 2
Determine the level of significance (alpha)
Step 3
Conduct the survey or experiment
Step 4
Calculate the test statistic
Calculate the p-value
Step 5
Make a conclusion

Hypothesis Test for a

Proportion

How to conduct a hypothesis test of a proportion, when the

following conditions are met:
The sampling method is simple random sampling.
Each sample point can result in just two possible outcomes. We call one
of these outcomes a success and the other, a failure.
The sample includes at least 10 successes and 10 failures.
The population size is at least 20 times as big as the sample size.
This approach consists of four steps: (1) state the hypotheses, (2) formulate
an analysis plan, (3) analyze sample data, and (4) interpret results.

Formulate an Analysis Plan

The analysis plan describes how to use sample data to accept or
reject the null hypothesis. It should specify the following elements.
Significance level. Often, researchers choose significance levels
equal to 0.01, 0.05, or 0.10; but any value between 0 and 1 can
be used.
Test method. Use the one-sample z-test to determine whether
the hypothesized population proportion differs significantly from
the observed sample proportion.

Analyze Sample Data

Using sample data, find the test statistic and its associated P-Value.
Standard deviation. Compute thestandard deviation() of the sampling distribution.
= sqrt[ P * ( 1 - P ) / n ]
where P is the hypothesized value of population proportion in the null hypothesis, and n is the
sample size.

Test statistic. The test statistic is a z-score (z) defined by the following equation.
z = (p - P) /
where P is the hypothesized value of population proportion in the null hypothesis, p is the sample
proportion, and is the standard deviation of the sampling distribution.

P-value. The P-value is the probability of observing a sample statistic as extreme as

the test statistic. Since the test statistic is a z-score, use theNormal Distribution
Calculatorto assess the probability associated with the z-score.

Interpret Results
If the sample findings are unlikely, given the null
hypothesis, the researcher rejects the null hypothesis.
Typically, this involves comparing the P-value to
thesignificance level, and rejecting the null hypothesis
when the P-value is less than the significance level.

Hypothesis Test for a Proportion

1. State H0 and H1 (involving
p)
2. Find z =
p-hat P
.
P * (1-P) /n
3. Get the P-Value.
4. If P-Value < reject H0 accept H1 and state the conclusion.
5. If P-Value > fail the reject H0 and make no conclusion,
there is no evidence

Proportion
A candidate for the upcoming election has done a survey of
registered voters to see if she will win (receive more than 50%
of the votes). Of the 300 registered voters surveyed, 170 of
them indicated that they would vote for this candidate. What
can be concluded at the 0.05 level of significance?
Step 1 State the H0 and H1
H0: p = 0.05

H1: p > 0.5 = 0.05 (standard)

Step 2 and 3 - Find the z and P-Value.

P0 = .50 (proportion in H0)
x = 170 (number in the sample that
said yes)
n = 300 (sample size)
P = > 0.5

z = 2.309
p-value = .0104
p hat (sample proportion) = .
5667
n = 300

Step 4 State the conclusion

H0: p = 0.5 H1: p > 0.5 = 0.05 (standard)
np = 170 > 5 nq = 130 > 5
P-Value = 0.01 < 0.05: Reject H0
Conclusion There is statistically significant evidence to
support that claim that she will receive more than 50% of the
votes.

Interpreting P-Value
H0: p = 0.5 H1: p > 0.5 = 0.05
P-Value = 0.01: If 50% will vote for the candidate and if
another randomly selected 300 voters are surveyed, then
there would be a 1% chance the at least 170 of them will
vote for the candidate.

Interpreting alpha
H0: p = 0.5 H1: p > 0.5 = 0.05
If 50% will vote for the candidate and if another randomly
selected 300 voters are surveyed, then there would be a 5%
chance that the new survey would lead us to the false
conclusion that the candidate will receive more than 50% of
the votes.

Twelve percent of Storybrook residents were born in

Storybrook. A researcher wants to see if the proportion at
Storybrook School is different. She surveys 400 Storybrook
School students and finds that 45 of them were born in
Storybrook. What can be concluded at the 0.05 level of
significant?
Step 1 State the H0 and H1.
H0: p = 0.12

H1: p 12 = 0.05

Step 2 and 3 Find the z and P-Value.

P0 = .12 (proportion in H0)
x = 45 (number of students who were
born in Storybrook
n = 400
P1 = 12

z = -.4615
P-Value = 0.64
P hat= .1125
n = 400

Step 4 State the conclusion.

H0: p = 0.12

H1: p 12 = 0.05

np = 45 > 5

nq = 355 > 5

P-Value = 0.64> 0.05: Fail to Reject H0

There is insufficient evidence to support the claim that the
proportion of Storybrook School students who were born in
Storybrook differs from 0.12

Problem 1: Two-Tailed Test

The CEO of a large electric utility claims that 80 percent
of his 1,000,000 customers are very satisfied with the
service they receive. To test this claim, the local
newspaper surveyed 100 customers, using simple
random sampling. Among the sampled customers, 73
percent say they are very satisified. Based on these
findings, can we reject the CEO's hypothesis that 80% of
the customers are very satisfied? Use a 0.05 level of
significance.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

State the hypotheses.The first step is to state the null

hypothesis and an alternative hypothesis.
Null hypothesis: P = 0.80
Alternative hypothesis: P 0.80
Note that these hypotheses constitute a two-tailed test. The null hypothesis will
be rejected if the sample proportion is too big or if it is too small.

Formulate an analysis plan. For this analysis, the

significance level is 0.05. The test method, is a
one-sample z-test.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.
Analyze sample data. Using sample data, we calculate the standard deviation () and compute
the z-score test statistic (z).
= sqrt[ P * ( 1 - P ) / n ]
= sqrt [(0.8 * 0.2) / 100]
= sqrt(0.0016) = 0.04
z = (p - P) /

where P is the hypothesized

value of population proportion in
the null hypothesis, p is the
sample proportion, and n is the
sample size.

= (.73 - .80)/0.04
= -1.75
Since we have atwo-tailed test, the P-value is the probability that the z-score is less than -1.75 or
greater than 1.75.
We use theNormal Distribution Calculator to find P(z < -1.75) = 0.04, and P(z > 1.75) = 0.04. Thus,
the P-value = 0.04 + 0.04 = 0.08.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

Interpret results. Since the P-value (0.08) is greater

than the significance level (0.05), we cannot reject the
null hypothesis.

Problem 2: One-Tailed Test

Suppose the previous example is stated a little bit
differently. Suppose the CEO claims thatat least80
percent of the company's 1,000,000 customers are very
satisfied. Again, 100 customers are surveyed using
simple random sampling. The result: 73 percent are very
satisfied. Based on these results, should we accept or
reject the CEO's hypothesis? Assume a significance level
of 0.05.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

State the hypotheses.The first step is to state the null

hypothesis and an alternative hypothesis.
Null hypothesis: P >= 0.80
Alternative hypothesis: P < 0.80
Note that these hypotheses constitute a one-tailed test. The null hypothesis will
be rejected only if the sample proportion is too small.

Formulate an analysis plan. For this analysis, the

significance level is 0.05. The test method, shown in the
next section, is aone-sample z-test.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.
Analyze sample data. Using sample data, we calculate the standard deviation ()
and compute the z-score test statistic (z).

= sqrt[ P * ( 1 - P ) / n ]
= sqrt [(0.8 * 0.2) / 100]
= sqrt(0.0016)
= 0.04

where P is the hypothesized

value of population proportion in
the null hypothesis, p is the
sample proportion, and n is the
sample size.

z = (p - P) /
= (.73 - .80)/0.04
= -1.75
Since we have aone-tailed test, the P-value is the probability that the z-score is less
than -1.75. We use theNormal Distribution Calculator to find P(z < -1.75) = 0.04.
Thus, the P-value = 0.04.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

Interpret results. Since the P-value (0.04) is less than

the significance level (0.05), we cannot accept the null
hypothesis.

Hypothesis Test for a Mean

How to conduct a hypothesis test of a mean, when the following conditions

are met:
The sampling method issimple random sampling.
The sampling distribution is normal or nearly normal.

Generally, the sampling distribution will be approximately normally

distributed if any of the following conditions apply.
The population distribution is normal.
The population distribution issymmetric,unimodal, withoutoutliers, and the sample
size is 15 or less.
The population distribution is moderatelyskewed, unimodal, without outliers, and
the sample size is between 16 and 40.
The sample size is greater than 40, without outliers.

This approach consists of four steps: (1) state the hypotheses, (2) formulate
an analysis plan, (3) analyze sample data, and (4) interpret results.

State the Hypotheses

The table below shows three sets of hypotheses. Each makes a statement about how
the population mean is related to a specified value M. (In the table, the symbol
means " not equal to ".)
Set Null hypothesis

Alternative hypothesis Number of tails

1 =M M 2
2 >M <M 1
3 <M >M 1
The first set of hypotheses (Set 1) is an example of a two-tailed test, since an
extreme value on either side of the sampling distribution would cause a researcher to
reject the null hypothesis. The other two sets of hypotheses (Sets 2 and 3) are onetailed tests, since an extreme value on only one side of the sampling distribution
would cause a researcher to reject the null hypothesis.

Formulate an Analysis Plan

The analysis plan describes how to use sample data to
accept or reject the null hypothesis. It should specify the
following elements.
Significance
level.
Often,
researchers
choose
significance levelsequal to 0.01, 0.05, or 0.10; but any
value between 0 and 1 can be used.
Test method. Use theone-sample t-testto determine
whether the hypothesized mean differs significantly

Analyze Sample Data

Using sample data, conduct a one-sample t-test. This involves finding the
standard error, degrees of freedom, test statistic, and the P-value associated
with the test statistic.
Standard error. Compute thestandard error(SE) of the sampling distribution.
SE = s * sqrt{ ( 1/n ) * [ ( N - n ) / ( N - 1 ) ] }
wheresis the standard deviation of the sample, N is the population size, andnis
the sample size. When the population size is much larger (at least 20 times larger)
than the sample size, the standard error can be approximated by: SE = s / sqrt( n )

Degrees of freedom. The degrees of freedom (DF) is equal to the sample size
(n) minus one. Thus, DF = n - 1.

Analyze Sample Data

Test statistic. The test statistic is a t-score (t) defined by
the following equation.
t = (x- ) / SE
wherexis the sample mean, is the hypothesized population
mean in the null hypothesis, and SE is the standard error.

P-value. The P-value is the

sample statistic as extreme
the
test
statistic
is
t Distribution Calculatorto

probability of observing a
as the test statistic. Since
a
t-score,
use
the
assess
the
probability

Interpret Results
If the sample findings are unlikely, given the null
hypothesis, the researcher rejects the null hypothesis.
Typically, this involves comparing the P-value to the
significance level, and rejecting the null hypothesis when
the P-value is less than the significance level.

Hypothesis for a Mean

State H0 and H1 (involving )
Determine
Get P-Value: Z-Test or T-test
If P < reject H0 accept H1 and state the conclusion.
If P > fail to reject H0 and make no conclusion,
there is no evidence.

Hypothesis for a Mean

A study was done to see if the average college student receives
less than the recommended 8 hours of sleep per night. The 45
students who were surveyed averaged 7.4 hours of sleep and
had a standard deviation of 2.1 hours. What can be concluded
at
the10.05
levelthe
of H
significance?
State
State
and H
0

H0: = 8

H1: < 8

= 0.05

Step 3 Determine the P-Value: t-test

=8
x bar = 7.4
Sample standard deviation =
2.1
n = 45
H1 = < 8
State 4 State the conclusion
H0: = 8
n = 45 > 30

H1: < 8

t = -1.916
p = .03

= 0.05

P-Value = 0.03 < 0.05: Reject H0

There is statistically significant evidence to support the
claim that the population mean hours of sleep that
college students get is less than 8 hours per night.

Interpreting P-Value
H0: = 8

H1: < 8

= 0.05

P-Value = 0.03: If the population mean number of hours of

sleep that college students get is 8 and if another 45 college
students were randomly surveyed then there would be a 3%
chance that the sample mean number of hours of sleep for
this new survey would be less than 7.4.

Problem 1: Two-Tailed Test

An inventor has developed a new, energy-efficient lawn
mower engine. He claims that the engine will run
continuously for 5 hours (300 minutes) on a single gallon
of regular gasoline. From his stock of 2000 engines, the
inventor selects a simple random sample of 50 engines
for testing. The engines run for an average of 295
minutes, with a standard deviation of 20 minutes. Test
the null hypothesis that the mean run time is 300
minutes against the alternative hypothesis that the mean
run time is not 300 minutes. Use a 0.05 level of
significance. (Assume that run times for the population of

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

State the hypotheses.The first step is to state the null

hypothesis and an alternative hypothesis.

Null hypothesis: = 300

Alternative hypothesis: 300
Note that these hypotheses constitute a two-tailed test. The null hypothesis
will be rejected if the sample mean is too big or if it is too small.

Formulate an analysis plan. For this analysis, the

significance level is 0.05. The test method is a
one-sample t-test.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.
Analyze sample data. Using sample data, we compute the standard error (SE), degrees of
freedom (DF), and the t-score test statistic (t).
where s is the standard
SE = s / sqrt(n)DF = n 1 t = (x- ) / SE
deviation of the sample,xis
the sample mean, is the
= 20 / sqrt(50)
= 50 1 = (295 - 300)/2.83
hypothesized population
= 20/7.07
= 49 = -1.77
mean, and n is the sample
= 2.83
size.

Since we have atwo-tailed test, the P-value is the probability that the t-score having 49
degrees of freedom is less than -1.77 or greater than 1.77.
We use thet Distribution Calculator to find P(t < -1.77) = 0.04, and P(t > 1.77) = 0.04. Thus,
the P-value = 0.04 + 0.04 = 0.08.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

Interpret results. Since the P-value (0.08) is greater

than the significance level (0.05), we cannot reject the
null hypothesis.

Problem 2: One-Tailed Test

Bon Air Elementary School has 1000 students. The
principal of the school thinks that the average IQ of
students at Bon Air is at least 110. To prove her point,
she administers an IQ test to 20 randomly selected
students. Among the sampled students, the average IQ is
108 with a standard deviation of 10. Based on these
results, should the principal accept or reject her original
hypothesis? Assume a significance level of 0.01. (Assume
that test scores in the population of engines are normally
distributed.)

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

State the hypotheses.The first step is to state the

null hypothesis and an alternative hypothesis.
Null hypothesis: >= 110
Alternative hypothesis: < 110
Note that these hypotheses constitute a one-tailed test. The null
hypothesis will be rejected if the sample mean is too small.
Formulate an analysis plan. For this analysis, the significance
level is 0.01. The test method is aone-sample t-test.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.
Analyze sample data. Using sample data, we compute the standard error (SE), degrees of freedom
where s is the standard
(DF), and the t-score test statistic (t).
SE = s / sqrt(n)

DF = n - 1

= 10 / sqrt(20)

= 20 - 1

= 10/4.472
= 2.236

= 19

t = (x- ) / SE
= (108 - 110)/2.236

= -0.894

deviation of the
sample,xis the sample
mean, is the
hypothesized population
mean, and n is the sample
size.

Here is the logic of the analysis: Given the alternative hypothesis ( < 110), we want to know whether
the observed sample mean is small enough to cause us to reject the null hypothesis.
The observed sample mean produced a t-score test statistic of -0.894. We use the
t Distribution Calculatorto find P(t < -0.894) = 0.19. This means we would expect to find a sample
mean of 108 or smaller in 19 percent of our samples, if the true population IQ were 110. Thus the Pvalue in this analysis is 0.19.

Solution:The solution to this problem takes four steps: (1) state the hypotheses,
(2) formulate an analysis plan, (3) analyze sample data, and (4) interpret
results.

Interpret results. Since the P-value (0.19) is greater

than the significance level (0.01), we cannot reject the
null hypothesis.

Hypothesis Testing of a
Variance

Where the data consist of a simple random sample

drawn from a normally distributed population, the
test statistic for testing hypotheses about a single
population
variance
is
2 = (n-1) s2 / 2
which, when Hois true, is distributed as 2
degrees of freedom.

with n-1

At a cereal filling plant, quality control engineers do not want the variance of
weights of 750 gram cereal boxes to exceed 100 grams 2.
Step 1 | Hypothesis
H0 : 2 = 100 Ha : 2 > 100
Step 2 | Determine level of significance and test statistics
= .05
test statistic is 2 = (n-1) s2 / 2
Step 3 | Data Collection
7 boxes were tested with weights 775, 780, 781, 795, 803, 810, 823
s2 = (x1 - xx ) 2 / n 1

= 315.5714

Step 4 | Calculation of test statistic an p-value

2 = (n-1) s2 / 2
2 = (( 7 - 1) * 315.5714) / 100 = 18.934
p-value
Using R : 0.0043
Using table : 0.0001 < p-value < 0.005

Step 5 | Make conclusion

There is a very strong evidence (p-value = 0.004) that the true variance of
the weight of cereal in boxes of this type is greater than 100.

A user of a certain gauge of steel wire suspects that the standard deviation of its breaking strength, in newtons (N), is
different from the value of 0.75 as specified by the manufacturer.
Consequently the user tests the breaking strength of each of a random sample of nine length of wire and obtains the
following results. 72.1 74.5 72.8 7573.4 75.4 76.1 73.5 74.1
Assuming breaking strength to be normally distributed, test at the 10% level of significance, the manufacturers
specification.

Step 1 | State the Hypothesis

H0 : = 0.75N

or

H0 : 2= 0.5625N2

HA : 2 0.75N

or

H0 : 2 0.5625N2 (two-tailed)

Step 2 | Determine level of significance and test statistics

= 0.10

degrees of freedom = 8

test statistic is 2 = (n-1) s2 / 2

Critical region, 2 < 2.733 or 2 > 15.507
Step 3 | Conduct survey (Collect data)
nine (9) length of wire
72.1 74.5 72.8 7573.4 75.4 76.1 73.5 74.1

Step 4 | Calculation of test statistic

(n-1) s2 = x2 ((x)2/n) = 49430.49 666.92/9 = 13.2
2 = (n-1) s2 / 2 = 13.2/0.5625 = 23.47
10%

10%

Step 5 | Make conclusion

This value does lie in the critical region. Thus there is
evidence, at the 5% level of significance, to dispute the
manufacturers specification as regards variability of
breaking strength.