Question #229162

 A shopkeeper claims that the average life of a CFL Bulb is 1600 hours. To check this claim, a researcher takes a sample of 100 CFL bulbs of the same make randomly and finds mean lifetime of 1570 hours with standard deviation of 120 hours. Is the claim acceptable at 5% level of significance ? [Given that Z= ± 1.96]


Expert's answer

Solution:

n=100, Xˉ=1570,σ=120\bar X=1570, \sigma=120

We test the hypotheses ;

H0:μ=1600H_0:\mu=1600

H1:μ≠1600H_1:\mu≠1600

Since the sample size is greater than 30 and the population standard deviation is known we use the z test.

Z=X−μσnZ=\dfrac{X-\mu} {\dfrac{\sigma} {\sqrt n}}

=1570−1600120100\dfrac{1570-1600}{\dfrac{120}{\sqrt{100}}}

=-2.5

We take a level of significance of 5%.

The corresponding critical value is;

Zα/2=1.96Z_{\alpha/2}=1.96

If the test statistic is greater than the critical value, we reject the null hypothesis in favor of the alternative hypothesis.

|-2.5|>1.96 or 2.5>1.96

We reject the null hypothesis hypothesis in favor of the alternative hypothesis.

We are 95% confident that the population mean lifetime of bulbs is not equal to 1600 hours.


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