Apply the 6 steps in hypothesis testing: 1. Formulate the H0 and Ha 2. Choose test statistic (such as z- test, t-test, or F-test)(? unknown = t-test; ? known = z- test) 3. Determine the critical region/ rejection region 4. Calculate the test statistic 5. Provide statistical decision (Reject/ or not to reject H0) 6. Make an interpretation and if possible, draw a conclusion. A random sample of 8 cigarettes of a certain brand has an average nicotine content of 4.2 milligrams and a standard deviation of 1.4 milligrams. Is this in line with the manufacturer’s claim that the average nicotine content does not exceed 3.5 milligrams?

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Apply the 6 steps in hypothesis testing:

1. Formulate the H0 and Ha
2. Choose test statistic (such as z- test, t-test, or F-test)(? unknown = t-test; ? known = z- test)
3. Determine the critical region/ rejection region
4. Calculate the test statistic
5. Provide statistical decision (Reject/ or not to reject H0)
6. Make an interpretation and if possible, draw a conclusion.

A random sample of 8 cigarettes of a certain brand has an average nicotine content of 4.2 milligrams and a standard deviation of 1.4 milligrams. Is this in line with the manufacturer’s claim that the average nicotine content does not exceed 3.5 milligrams? Use a 0.01 level of significance and assume the distribution of nicotine contents to be normal.

In 2006, the average annual family income in the National Capital Region was P310,860 with standard
deviation of P176,870. With the increased prices of commodities, it is hoped that the mean annual
family income has also increased. A survey is conducted to verify this contention. A random sample of
320 families has a mean annual income of P325,255. Isthe sample result sufficient to demonstrate that
the mean annual family income in NCR is significantly higher than P310,860 at 1% level of significance?
1. H0: µ=310,860 OR HO: µ<310,860
Ha: µ>310,860 (claim)
2. Since o is known the test statistic is z – test
3. The level of significance is a = 0.01 Type of test: one- tailed (right)
cv=2.33
4. µ=310,860 x=325,255 0=176,870 n=320
z=325255-310860 =1.46
176870
V320
5. Since |zcomp|=1.46<|zcrit|=2.33, then Do Not Reject the HO
6. There is a statistical evidence to show that the mean annual family income in NCR is not higher
than P310,860 at 1% level of significance.
Transcribed Image Text:In 2006, the average annual family income in the National Capital Region was P310,860 with standard deviation of P176,870. With the increased prices of commodities, it is hoped that the mean annual family income has also increased. A survey is conducted to verify this contention. A random sample of 320 families has a mean annual income of P325,255. Isthe sample result sufficient to demonstrate that the mean annual family income in NCR is significantly higher than P310,860 at 1% level of significance? 1. H0: µ=310,860 OR HO: µ<310,860 Ha: µ>310,860 (claim) 2. Since o is known the test statistic is z – test 3. The level of significance is a = 0.01 Type of test: one- tailed (right) cv=2.33 4. µ=310,860 x=325,255 0=176,870 n=320 z=325255-310860 =1.46 176870 V320 5. Since |zcomp|=1.46<|zcrit|=2.33, then Do Not Reject the HO 6. There is a statistical evidence to show that the mean annual family income in NCR is not higher than P310,860 at 1% level of significance.
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