In: Statistics and Probability
The Nero Match Company sells matchboxes that are said to contain an average of 40 matches per box with a standard deviation of 9 matches. A random sample of 94 Nero matchboxes shows the average number per box to be 41.8 Using a 1% level of significance, can you say that the average number of matches per box is more than 40?
1) What type of hypothesis test is this?
2) State the hypotheses.
3) Calculate the value of the Test Statistic.
4) Calculate the P-Value.
5) What is the decision?
n = 94
Sample mean =
Population standard deviation =
Here Population standard deviation is known so we use z test.
1) This is one sample z test.
2) Here we have to test that
where
3) Test statistic:
z = 1.94 (Round to 2 decimal)
Test statistic = 1.94
4) P value:
Test is right tailed test.
P value = P(z > 1.94)
= 1 - P(z < 1.94)
= 1 - 0.9738 (From statistical table of z values)
= 0.0262
P value = 0.0262
5)
Level of significance = = 0.01
Here p value >
So we fail to reject H0.
Conclusion : There is not sufficient evidence to support the claim that the average number of matches per box is more than 40