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Published on: 05/06/2021
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Take MCQ Business Maths and Statistics Test

1.
The mean breaking strength of cables supplied by a manufacturer is 1,800 with a standard deviation 100. By a new technique in the manufacturing process it is claimed that the breaking strength of the cables has increased. In order to test this claim a sample of 50 cables is tested. It is found that the mean breaking strength is 1,850. Can you support the claim at 0.01 level of significance.
2.
A sample of 400 individuals is found to have a mean height of 67.47 inches. Can it be reasonably regarded as a sample from a large population with mean height of 67.39 inches and standard deviation 1.30 inches at 0.05 level of significance?
3.
A random sample of 60 observations was drawn from a large population and its standard deviation was found to be 2.5. Calculate the suitable standard error that this sample is taken from a population with standard deviation 3?
4.
Explain the stratified random sampling with a suitable example.
5.
An ambulance service claims that it takes on the average 8.9 minutes to reach its destination in emergency calls. To check on this claim, the agency which licenses ambulance services has them timed on 50 emergency calls, getting a mean of 9.3 minutes with a standard deviation of 1.6 minutes. What can they conclude at 5% level of significance.
1.
Sample size n = 50,
Sample mean \(\bar { X } \) = 1850
Population mean μ = 1800
Population standard deviation σ = 100
Null Hypotheses H0:
μ = 1800 (i.e., To claim that the breaking strength of the cables have increased)
Alternative Hypotheses H1:
μ≠1800(To claim that the breaking strength of the cables have not increased)
The level of significance ∝ = 1% =.001
Applying the test statistic,
\(Z=\frac { \bar { X } -\mu }{ \frac { \sigma }{ \sqrt { n } } } \)
\(\Rightarrow Z=\frac { 1850-1800 }{ \frac { 100 }{ \sqrt { 50 } } } =\frac { 50 }{ \frac { 100 }{ 7.07 } } =\frac { 50 }{ 14.144 } =3.535\)
\(\Rightarrow \therefore Z=3.535\)
The Significant value \({ Z }_{ \frac { \alpha }{ 2 } }=2.58\)
Here \(Z<{ Z }_{ \frac { \alpha }{ 2 } }i.e.,3.535<2.58\)
Inference: Since \(Z<{ Z }_{ \frac { \alpha }{ 2 } }\) at 1% level of significance, the null hypothesis Ho is rejected.
Hence, we conclude that μ≠ 1800 and we cannot support the claim that the breaking strength of the cables have increased.
2.
Given Sample size n = 400
Sample mean \(\\ \bar { X } =67.47\)inches
Population mean μ = 67.39 & σ = 1.30 inches)
Null Hypotheses Ho:
μ = 67.39 inches (i.e., the sample has been drawn from the population with μ = 67.39 & σ = 1.30 inches)
Alternative Hypotheses H1:
μ ≠ 67.39 inches (two tail test)
(i.e., the sample has not been drawn from the population with μ = 67.39 & σ = 1.30 inches) The level of significance a = 5% = 0.05
Applying the test statistic,
\(Z=\frac { \bar { X } -\mu }{ \frac { \sigma }{ \sqrt { n } } } \)
\(\Rightarrow Z=\frac { 67.47-67.39 }{ \frac { 1.30 }{ \sqrt { 400 } } } =\frac { 0.08 }{ 0.065 } =1.2308\)
\(\therefore |Z|=1.2308\)
The significant value \({ Z }_{ \frac { \alpha }{ 2 } }=1.96\)
Here \(Z={ Z }_{ \frac { \alpha }{ 2 } }i.e.,1.2308<1.96\)
Inference: Since \({ Z }_{ \frac { \alpha }{ 2 } }\)at 5% level of significance the null hypothesis Ho is accepted.
Hence, we conclude that the sample has been drawn from the population with mean height 67.39 inches and standard deviation 1.30 inches.
3.
Sample size n = 60
Population standard deviation σ = 3
The standard error for sample standard deviation
\(=\sqrt { \frac { { \sigma }^{ 2 } }{ 2n } } \)
\(=\sqrt { \frac { { 3 }^{ 2 } }{ 2(60) } } =\sqrt { \frac { 9 }{ 120 } } =\sqrt { 0.075 } \)
S.E.of sample standard deviation = 0.2739
4.
When the population is heterogeneous with respect to the variable, then Stratified Random Sampling method is used.
Following steps are involved:
a) The population is divided into different classes so that each stratum will consist of more or less homogeneous elements. The strata are so designed that they do not overlap each other.
b) After the population is stratified, a sample is drawn at random from each stratum using Lottery Method or Table of Random Number Method.
Example:
From the following data, select 68 random samples from the population of heterogeneous group with size of 500 through stratified random sampling, considering the following categories as strata.
Category 1 : Lower income class - 39%
Category 2 : Middle income class - 38%
Category 3 : Upper income class- 23%
solution:
| Stratum | Homogenous group | Percentage from population | Number of people in each strata | Random Samples |
| Category 1 | Lower income class | 39 |
\(\frac{39}{100}\times 500=195\) |
\(195\times \frac { 68 }{ 500 } =26.5\sim 26\) |
| Category 2 | Middle income class | 38 | \(\frac{38}{100}\times 500=190\) | \(190\times \frac { 68 }{ 500 } =26.5\sim 26\) |
| Category 3 | Upper income class | 23 | \(\frac{23}{100}\times 500=115\) | \(115\times \frac { 68 }{ 500 } =15.6\sim 16\) |
| Total | 100 | 500 | 68 |
5.
Sample size n = 50
Sample mean \(\bar { x } =9.3\) minutes
Sample S.D s = 1.6 minutes
Population mean μ = 8.9 minutes
Null hypothesis H0: μ = 8.9
Alternative hypothesis H1: μ = 8.9 (two tail)
Level of significance μ = 0.05
Test statistic \(Z=\frac { \bar { x } -\mu }{ \frac { \sigma }{ \sqrt { n } } } \sim N(0,1)\)
\(\\ Z=\frac { 9.3-8.9 }{ \frac { 1.6 }{ \sqrt { 50 } } } =\frac { 0.4 }{ 0.2263 } =1.7676\)
Calculated value Z = 1.7676
Critical value at 5% level of significance is \({ Z }_{ \frac { \alpha }{ 2 } }=1.96\)
Inference: Since the calculated value is less than table value i.e., \(Z<{ Z }_{ \frac { \alpha }{ 2 } }\) at 5% level of significance, the null hypothesis is accepted.
Therefore we conclude that an ambulance service claims on the average 8.9 minutes to reach its destination in emergency calls.
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