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• Sample size small and σ unknown ( S used as an estimator)

• (Xbar - µ)/(S/sqrt(n)) -> Tn-1 i.e. T distribution with degrees of freedom

• (n-1)S2/σ2 = χ2 with d.f = n-1
• Null Hypothesis – H0 – status quo
• Alternate hypothesis – Ha- what you wish to prove
• State the assumption – e.g. – population is normal
• Test statistic – t , z , χ^2 etc.
• Defining the Critical region – based on required p value/ alpha - plot
it out
• Rejecting the null hypothesis or not rejecting the null hypothesis for
the given p ( level of confidence )
Type 1 and type 2 error
• Type 1 error – Rejecting the null hypothesis when it is actually true –
• Type 2 error – not rejecting the null hypothesis when alt hyp true – β
• Power of a test – (1-β) = P(rejecting H0 when Ha is true)
Q1) An antibiotic is claimed to cure at least 90% of cases of
tuberculosis. 80 TB patients are treated with antibiotic and out of them
59 got cured. Do you consider the claim to be justified at 5% level of
Q2) A local automotive repair shop advertises a special maintenance
package, including tire balancing, new spark plugs, engine oil additive,
and a front-end alignment, that will improv gas mileage. In order to
check this claim, 18 cars (and drives) were randomly selected. Each car
was driven on a specially designed route and the miles per gallon for
each car was recorded. Following the maintenance package, each
driver took the same route, and the miles per gallon were measured
again. The summary statistics for the differences (before maintenance
mpg- after maintenance mpg) were d = -1.28 and SD = 5.62. Find a
99% confidence interval for the true difference in mean miles per
Q3) A machine in a certain factory must be repaired if it produces more
than 10% defectives among the large lot of items it produces in a day. A
random sample of 100 items from a day’s production contains 15
defectives and the manager says the machine must be repaired. Let
theta =proportion of defective items produced by the machine in a day.
(a) Does the sample evidence support his decision for alpha = 0.01
(b) Compute P(Type II error when theta = 0.15) for your test
(c) Compute the power of the test at theta = 0.15

Q4) The television habits of 30 children were observed. The sample

mean was found to be 48.2 hours per week, with a standard deviation
of 12.4 hours per week. Test the claim that the standard deviation was
at least 16 hours per week. (alpha = 5%).