1.

A random sample of 200 measurements from a

large population gave a mean value of 50 and a
standard deviation of 9. Determine 95%
confidence interval for the mean of population.
Given that,
Sample size n = 200
Mean value of population, x = 50
Standard deviation of population σ =9

95% confidence interval for the mean population is

[ x−Z α
2
( √σn ) , x+ Z ( √σn )]
α
2

= [ 50−0.475
( 9
√200 )
,50+0.475
( 9
√200 )]
Zα
To find 2
at 5% level of significance (assumed)

¿) 100 = 5
¿) = 5/100 = 0.05
α = 1-0.05 = 0.95
α /2 = 0.95/2 = 0.475
Zα
From the table of areas the value of 2
is 1.96

Substituting in the above equation

(48.753, 51.247)
2. A coin was tossed 400 times and the head turned
up 216 times. Test the hypothesis that the coin is
unbiased.
Total number of times of tossing a coin n = 400
Number of head successes x = 216
Null hypothesis H0 : The coin is unbiased
Alternate Hypothesis Ha : The coin is biased
X−np
z=¿
√n p q
Where p = probability of getting a head = ½
Q is the probability of not getting a head = 1 – ½ =
½

Substituting in the equation :

Z = 1.6
If |z| > 3 then H0 is always rejected
Since |z| ≤ 3 ie., 1.6 , 3 , H0 is accepted at certain
level of significance , usually at 5%. Thus the coin is
unbiased.
3. In a sample of 1000 people in Andhra Pradesh 550
are rice eaters and the rest are wheat eaters. Can
we assume that both rice and wheat are equally
popular in the state at 1% level of significance?
Sample size n = 1000
Sample portion of rice eaters
p = 550/1000 = 0.55
But given that both rice and wheat are equally
popular
Implies P = ½
Q = 1- P = 1 – ½ = ½
Null hypothesis H0 : Both rice and wheat eaters are
equally popular in the state
ie., P = 0.5
Alternate Hypothesis Ha : Both rice and wheat
eaters are not equally popular in the state
that is P ≠ 0.5
p−P
¿
Z
√ PQ
n

Z = 3.162
Calculated value of Z = 3.162
 At 1% confidence level of significance
¿) 100 = 1
μ ¿) = 1/100 = 0.01
α = 1-0.01 = 0.99
α /2 = 0.99/2 = 0.495
From the table of areas, the value of Z at 0.495 is
2.58
Since the calculated value of Z is greater than the
table value of Z, the null Hypothesis is rejected. So
both rice and wheat eaters are not equally popular in
the state at 1% level of significance.
4. Life of a random sample of 10 CFL bulbs out of a
pack of 50 bulbs carton shows the following readings:
Ite 1 2 3 4 5 6 7 8 9 10
m
Life 3.8 4.5 4.0 4.0 5.3 4.2 3.9 4.5 4.3 5.5
Test at 1% level of significance if the life of the bulbs is
4000 hours.
Solution
H0 : μ=4000

Ha: μ ≠ 4000

n = 10
N = 50
Since n is small, population is finite, population
variance unknown , hence assuming population to be
normal ,
 X −μ

( √σn ) x √ (N −1)
t=¿ (N−n)

σ =¿
√ ∑ ( X− X )2
(n−1)

Sl. No. Xi X-X ( X −X )2

1 3.8 -0.6 0.36
2 4.5 0.1 0.01
3 4.0 -0.4 0.16
4 4.0 -0.4 0.16
5 5.3 0.9 0.81
6 4.2 -0.2 0.04
7 3.9 -0.5 0.25
8 4.5 0.1 0.01
9 4.3 -0.1 0.01
10 5.5 1.1 1.21
44 3.02

Mean X = 44/10 = 4.4

SD σ =¿
√ ∑ ( X− X )2 =
(n−1)
σ =¿
√ 3.02
(10−1)
= 0.58

4.4−4

( )
t=¿ 0.58
√ 10
x
√
(50−10)
(50−1)
= 2.46

Ha is two sided, hence rejection region at 0.01 level of significance

for (n-1) =9 degrees of freedom come to |t| . 3.25
Since calculated t value lies in the acceptance region, hence the null
hypothesis is accepted.
5. CSO estimates that the average annual income of all
the wage earners in India is Rs. 75000 with a standard
deviation of Rs. 6000. A private research organization
was asked to test the official estimate at 5% level of
significance. A random sample of 3,600 wage earners
was taken across the country and found the sample
mean as Rs. 73,250. Test the mean wages of the
employees
Null hypothesis H0 : μ=75000
Alternate hypothesis Ha : μ ≠75000

The population is infinite, sample size is large and

population variance is known.
X−μ
Therefore Z = σ
√n
Sample mean = 73,250
Population mean = 75000
Standard deviation = 6000
Sample size = 3,600
Z = -17.5
At 5% level of significance Z = 1.645
Since calculated Z = - 17.5 < Z table value 1.645
Implies null hypothesis is rejected.
Hence the average annual income of all the wage
earners in India is less than 75000.

6. The mean breaking strength of the cables supplied

by a manufacturer is 1800 with a standard deviation of
120. However the manufacturer now claims to have
used a new technique whereby the breaking strength of
cables has increased. To test this, a sample of 50
cables is tested and the mean breaking strength is
found to be 1875. Is the manufacturer’s claim true?
Test at 1% level of significance.
Null hypothesis H0 : μ=1800

Alternate hypothesis Ha : μ>1800

N = 50

Mean = 1875

SD = 120

X−μ
Z = σ
√n
Z = 4.41

Since Ha is one sided ( right side) the rejection region at 1% level of

significance is Z > 2.33

Since the calculated Z value is greater than the Z table value, null
hypothesis is rejected. Hence it can be said that the new technique has
increased the breaking strength of cables.

Z test for difference between two means:

X 1−X 2
¿
Z
√
2 2
σ1 σ2
+
n1 n2
 1. A buyer wants to decide which of the two brands of battery cells to
buy in bulk. However before making any choice he buys 75 battery
cells of each of the two brands. He finds that the brand X has a
mean life of 900 hours with a standard deviation of 24 hours and
brand Y has a mean life of 950 hours with a standard deviation of 20
hours.
do the brands differ significantly in quality.
Null hypothesis Ho : μ1=μ2
Alternate Hypothesis Ha : μ1 ≠ μ2

X 1 = 900
X 2 =950
σ 1=25
σ 2=20

Since sample is large and samples are drawn from different

population ,

X 1−X 2
¿
Z
√
2 2
σ1 σ2
+
n1 n2

Z = - 13.52
But at 5% level of significance , the Z value is 1.96

Since the calculated Z value is very less than the table Z value, null
hypothesis is rejected. That is the battery cell brands differ significantly in
quality.

7. A manager of a firm unit has received a grievance that workers

working in plant A are receiving higher wages than workers working in
Plant B. The firm conducted a survey to find the truth behind the
complaint with the following results.

Plant A Plant B
Sample Size 15 12
Average wages 12,500 11,200
Standard deviation 300 450

Test it at 5% level of significance

Since sample size is small,

 X A −X B

√ √
2 2
t=¿ ( n A −1 ) σ A + ( n B−1 ) σ B 1 1
x +
n A +nB −2 nA nB

T = 8.92

Ha is one sided, hence table value of t is n1+ n2 – 2 = 25, degree of

freedom at 0.05 level of significance is t > 1.708

Since calculated t value is 8.92 which is greater than 1.708 of table t

value,

Null hypothesis is rejected. Therefore workers in Plant A have higher

wages than workers in Plant B.