Problem Statement 1:

In each of the following situations, state whether it is a correctly stated hypothesis

testing problem and why?

1. 𝐻0: 𝜇 = 25, 𝐻1: 𝜇 ≠ 25

2. 𝐻0: 𝜎 > 10, 𝐻1: 𝜎 = 10
3. 𝐻0: 𝑥 = 50, 𝐻1: 𝑥 ≠ 50
4. 𝐻0: 𝑝 = 0.1, 𝐻1: 𝑝 = 0.5
5. 𝐻0: 𝑠 = 30, 𝐻1: 𝑠 > 30

Problem Statement 2:

The college bookstore tells prospective students that the average cost of its
textbooks is Rs. 52 with a standard deviation of Rs. 4.50. A group of smart statistics
students thinks that the average cost is higher. To test the bookstore’s claim against
their alternative, the students will select a random sample of size 100. Assume that
the mean from their random sample is Rs. 52.80. Perform a hypothesis test at the
5% level of significance and state your decision.

Problem Statement 3:

A certain chemical pollutant in the Genesee River has been constant for several
years with mean μ = 34 ppm (parts per million) and standard deviation σ = 8 ppm. A
group of factory representatives whose companies discharge liquids into the river is
now claiming that they have lowered the average with improved filtration devices. A
group of environmentalists will test to see if this is true at the 1% level of
significance. Assume \ that their sample of size 50 gives a mean of 32.5 ppm.
Perform a hypothesis test at the 1% level of significance and state your decision.

Problem Statement 4:

Based on population figures and other general information on the U.S. population,
suppose it has been estimated that, on average, a family of four in the U.S. spends
about $1135 annually on dental expenditures. Suppose further that a regional dental
association wants to test to determine if this figure is accurate for their area of
country. To test this, 22 families of 4 are randomly selected from the population in
that area of the country and a log is kept of the family’s dental expenditure for one
year. The resulting data are given below. Assuming, that dental expenditure is
normally distributed in the population, use the data and an alpha of 0.5 to test the
dental association’s hypothesis.

1008, 812, 1117, 1323, 1308, 1415, 831, 1021, 1287, 851, 930, 730, 699,
872, 913, 944, 954, 987, 1695, 995, 1003, 994
Problem Statement 5:

In a report prepared by the Economic Research Department of a major bank the

Department manager maintains that the average annual family income on Metropolis
is $48,432. What do you conclude about the validity of the report if a random sample
of 400 families shows and average income of $48,574 with a standard deviation of
2000?

Problem Statement 6:

Suppose that in past years the average price per square foot for warehouses in the
United States has been $32.28. A national real estate investor wants to determine
whether that figure has changed now. The investor hires a researcher who randomly
samples 19 warehouses that are for sale across the United States and finds that the
mean price per square foot is $31.67, with a standard deviation of $1.29. assume
that the prices of warehouse footage are normally distributed in population. If the
researcher uses a 5% level of significance, what statistical conclusion can be
reached? What are the hypotheses?

Problem Statement 7:

Fill in the blank spaces in the table and draw your conclusions from it.

Problem Statement 8:

Find the t-score for a sample size of 16 taken from a population with mean 10 when
the sample mean is 12 and the sample standard deviation is 1.5.

Problem Statement 9:

Find the t-score below which we can expect 99% of sample means will fall if samples
of size 16 are taken from a normally distributed population.
Problem Statement 10:

If a random sample of size 25 drawn from a normal population gives a mean of 60

and a standard deviation of 4, find the range of t-scores where we can expect to find
the middle 95% of all sample means. Compute the probability that (−𝑡0.05 <𝑡<𝑡0.10).

Problem Statement 11:

Two-tailed test for difference between two population means

Is there evidence to conclude that the number of people travelling from Bangalore to
Chennai is different from the number of people travelling from Bangalore to Hosur in
a week, given the following:
Population 1: Bangalore to Chennai n1 = 1200
x1 = 452
s1 = 212
Population 2: Bangalore to Hosur n2 = 800
x2 = 523
s2 = 185

Problem Statement 12:

Is there evidence to conclude that the number of people preferring Duracell battery is
different from the number of people preferring Energizer battery, given the following:
Population 1: Duracell
n1 = 100
x1 = 308
s1 = 84
Population 2: Energizer
n2 = 100
x2 = 254
s2 = 67

Problem Statement 13:

Pooled estimate of the population variance

Does the data provide sufficient evidence to conclude that average percentage
increase in the price of sugar differs when it is sold at two different prices?
Population 1: Price of sugar = Rs. 27.50 n1 = 14
x1 = 0.317%
s1 = 0.12%
Population 2: Price of sugar = Rs. 20.00 n2 = 9
x2 = 0.21%
s2 = 0.11%
Problem Statement 14:

The manufacturers of compact disk players want to test whether a small price
reduction is enough to increase sales of their product. Is there evidence that the
small price reduction is enough to increase sales of compact disk players?
Population 1: Before reduction
n1 = 15
x1 = Rs. 6598 s1 = Rs. 844
Population 2: After reduction n2 = 12
x2 = RS. 6870
s2 = Rs. 669

Problem Statement 15:

Comparisons of two population proportions when the hypothesized difference is zero

Carry out a two-tailed test of the equality of banks’ share of the car loan market in
1980 and 1995.
Population 1: 1980
n1 = 1000
x1 = 53
𝑝 1 = 0.53
Population 2: 1985
n2 = 100
x2 = 43
𝑝 2= 0.53

Problem Statement 16:

Carry out a one-tailed test to determine whether the population proportion of

traveler’s check buyers who buy at least $2500 in checks when sweepstakes prizes
are offered as at least 10% higher than the proportion of such buyers when no
sweepstakes are on.
Population 1: With sweepstakes
n1 = 300
x1 = 120
𝑝 = 0.40
Population 2: No sweepstakes n2 = 700
x2 = 140
𝑝 2= 0.20

Problem Statement 17:

A die is thrown 132 times with the following results: Number turned up: 1, 2, 3, 4, 5, 6
Frequency: 16, 20, 25, 14, 29, 28
Is the die unbiased? Consider the degrees of freedom as 𝑝 − .
Problem Statement 18:

In a certain town, there are about one million eligible voters. A simple random
sample of 10,000 eligible voters was chosen to study the relationship between
gender and participation in the last election. The results are summarized in the
following 2X2 (read two by two) contingency table:

We would want to check whether being a man or a woman (columns) is independent of

having voted in the last election (rows). In other words, is “gender and voting independent”?

Problem Statement 19:

A sample of 100 voters are asked which of four candidates they would vote for in an
election. The number supporting each candidate is given below:

Do the data suggest that all candidates are equally popular? [Chi-Square = 14.96,
with 3 df, 𝑝 0.05 .

Problem Statement 20:

Children of three ages are asked to indicate their preference for three photographs of
adults. Do the data suggest that there is a significant relationship between age and
photograph preference? What is wrong with this study? [Chi-Square = 29.6, with 4
df: 𝑝 < 0.05].
Problem Statement 21:

A study of conformity using the Asch paradigm involved two conditions: one where
one confederate supported the true judgement and another where no confederate
gave the correct response.

Is there a significant difference between the "support" and "no support" conditions in the
frequency with which individuals are likely to conform? [Chi-Square = 19.87, with 1 df:
𝑝 < 0.05].

Problem Statement 22:

We want to test whether short people differ with respect to their leadership qualities
(Genghis Khan, Adolf Hitler and Napoleon were all stature-deprived, and how many midget
MP's are there?) The following table shows the frequencies with which 43 short people and
52 tall people were categorized as "leaders", "followers" or as "unclassifiable". Is there a
relationship between height and leadership qualities?

[Chi-Square = 10.71, with 2 df: 𝑝 < 0.01].

Problem Statement 23:

Each respondent in the Current Population Survey of March 1993 was classified as
employed, unemployed, or outside the labor force. The results for men in California age 35-
44 can be cross-tabulated by marital status, as follows:
Men of different marital status seem to have different distributions of labor force status. Or is
this just chance variation? (you may assume the table results from a simple random
sample.)

EXPECTED OUTPUT: This assignment consists of 2000 marks and

needs to be submitted in .ipynb/PDF format in the upcoming session for
evaluation.