Question

Provide three specific examples of situations in which a person within a business setting would use one-sample hypothesis tests and why they should be used in those situations

Answer 1

Example 1:

Suppose, a manufacturer produce an item, and with respect to a quality issue, any manufactured product is classified as either non-defective which meets the quality or a defective item, which does not attain the quality. Suppose, he can tolerate only 5% defective items in his production process. Then he can select a random sample and conduct a one-sample hypothesis test for proportion to check the attainment of quality.

Example 2:

A business man produces cricket balls. The average weight of ball is 82 grams and he knows that the standard deviation of the weight of balls due to production process is 2grams. Then to check whether the balls produced maintain the average weight of 82 grams, he can select a random sample and conduct a one-sample test to check the fact.

Example 3:

Like the above example 2, if he doesn't know about the variation of the weights of balls produced by the machine, then also he can select a random sample and conduct a one-sample test for checking the quality issue maintenance.