A research engineer for a tire manufacturer is investigating
Solution
I.
Set Up Hypothesis
Null Hypothesis H0: U=61000
Alternate, It is more than Mean H1: U>61000
Test Statistic
Population Mean(U)=61000
Sample X(Mean)=63245
Standard Deviation(S.D)=3035
Number (n)=10
we use Test Statistic (t) = x-U/(s.d/Sqrt(n))
to =63245-61000/(3035/Sqrt(9))
to =2.1
| to | =2.1
Critical Value
The Value of |t | with n-1 = 9 d.f is 1.833
We got |to| =2.1 & | t | =1.833
Make Decision
Hence Value of | to | > | t | and Here we Reject Ho
P-Value :Right Tail - Ha : ( P > 2.1 ) = 0.03256
Hence Value of P0.05 > 0.03256,Here we Reject Ho
II.
CI = x ± t a/2 * (sd/ Sqrt(n))
Where,
x = Mean
sd = Standard Deviation
a = 1 - (Confidence Level/100)
ta/2 = t-table value
CI = Confidence Interval
Mean(x)=63245
Standard deviation( sd )=3035
Sample Size(n)=10
Confidence Interval = [ 63245 ± t a/2 ( 3035/ Sqrt ( 10) ) ]
= [ 63245 - 2.26 * (959.751) , 63245 + 2.26 * (959.751) ]
= [ 61075.962,65414.038 ]
III.
We conclude that it is more tha 61000
