Hypothesis Testing with known population variance

Homework 1: One-sample Hypothesis Testing with known population variance

  1. Test the claim that the true mean diameter of a manufactured bolt is 30mm. Assume population standard deviation equals 0.8mm. Tolerate type I error =0.05. A sample of 100 bolts is collected. The sample mean is 29.84. Please use both the P-value method and the critical value method to test your understanding of the two methods.

Answer to question 1 with critical value method

  1. The value of interest is
    30mm
  2. State the appropriate null and alternative hypotheses
    H0: µ=30 H1: µ≠30 This is a two tail test
  3. Specify the desired level of significance
    Suppose that  = 0.05
  4. (only when using critical value method) Determine the critical values
    For  = 0.05 the critical Z values are ±1.96 (two tails, two values)
    The null use the equal sign, so the level of significance is divided by 2, and assigned equally to the left and the right side.
  5. Determine the appropriate test statistic
    σ is assumed known so this is a Z test.
    Compute the test statistic according to the sample information
  6. Last step, make your decision
    (only when using critical value method)
    ZSTAT = -2.0 < -1.96, so the test statistic is in the rejection region

Answer to question 1 with p-value method

  1. The value of interest is
    30mm
  2. State the appropriate null and alternative hypotheses
    H0: µ=30 H1: µ≠30 This is a two tail test
  3. Specify the desired level of significance
    Suppose that  = 0.05
  4. Determine the appropriate test statistic
    σ is assumed known so this is a Z test.
    Compute the test statistic according to the sample information
  5. (only when using p-value method) Determine the p-value for ONE of the two sides. Then multiply by 2.
    P-value = 0.0228 *2
  6. Last step, make your decision
    (when using p-value method)
    p-value=0.0456<0.05=, so we reject
  7. Test the claim that the true mean diameter of a manufactured bolt is larger than 30mm. Assume population standard deviation equals 0.8mm. Tolerate type I error =0.05. A sample of 100 bolts is collected. The sample mean is 29.84. Please use both the P-value method and the critical value method to test your understanding of the two methods.

Answer to question 1 with critical value method

  1. The value of interest is
    30mm
  2. State the appropriate null and alternative hypotheses
    H0: µ<=30 H1: µ>30
    This is a ONE tail test. We also flipped the null and alternative hypothesis to keep the equal sign in the null.
  3. Specify the desired level of significance
    Suppose that  = 0.05
  4. (only when using critical value method) Determine the critical values
    For  = 0.05 the critical Z values are 1.64
    (One-sided one value! Upper tail test, so positive value)
    Determine the appropriate test statistic
    σ is assumed known so this is a Z test.
  5. Compute the test statistic according to the sample information
  6. Last step, make your decision
    (only when using critical value method)
    ZSTAT = -2.0 < 1.64, so the test statistic is in the do not reject region. The population mean is smaller than or equal to 30.

Answer to question 1 with p-value method

  1. The value of interest is
    30mm
  2. State the appropriate null and alternative hypotheses
    H0: µ<=30 H1: µ>30
  3. Specify the desired level of significance
    Suppose that  = 0.05
  4. Determine the appropriate test statistic
    σ is assumed known so this is a Z test.
    Compute the test statistic according to the sample information
  5. (only when using p-value method) Determine the p-value for ONE SIDE!
    P-value =Prob(Z>=-2)=0.9772
  6. Last step, make your decision
    (when using p-value method)
    p-value=0.9772>0.05= , so we do not reject

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