A company manufactures batteries that the CEO claims will last an average of 350 hours under normal use. A researcher randomly selected 20 batteries from the production line and tested these batteries. The tested batteries had a mean life span of 320 hours with a standard deviation of 50 hours. Do you agree with CEO?
H0 "\\mu=350"
Ha "\\mu<350"
"n=20, \\bar {X}=320 s=50"
Since population standard deviation is unknown, "\\bar{X}" follows tn-1 distribution with mean "\\mu" and variance "\\frac{s}{\\sqrt{n}}"
"t-value=\\frac{\\bar{X}-\\mu}{\\frac{s}{\\sqrt{n}}}"
"=\\frac{320-350}{\\frac{50}{\\sqrt{20}}}=-2.68328"
The critical region is on the left, at 5% level of significance, t0.05,19 is"-1.729133"
The critical value can be obtained from =T.INV(0.05,19) Excel formula.
Taking absolute values, t-value is greater than the critical value; thus, we reject the bill hypothesis and conclude that the batteries average lifespan is less than 350. The CEO's claim is not supported.
Similarly, t0.95,19 can be used, and from t- table or =T.INV(0.95,19), the critical value is 1.729132812, and by taking absolute value of t- value, similar conclusion is arrived at.
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