Question
Please solve the following questions using Hypothesis Testing by following the steps . Steps in hypothesis testing: 1. Formulate the null hypothesis and alternative hypothesis.
Please solve the following questions using Hypothesis Testing by following the steps.
Steps in hypothesis testing:
1. Formulate the null hypothesis and alternative hypothesis.
2. Choose a level of significance to be used.
3. Decide the test statistics to be used, and find the critical value for the test.
4. Compute for the value of the test statistics.
5. Make decision whether to reject or fail to reject the null hypothesis.
6. State the conclusion.
Questions:
1. The production manager of a large manufacturing company estimates that the mean age of is employees is 22.8 years. The treasurer of the firm needs a more accurate employee mean age figure in order to estimate the cost of an annuity benefit program being considered for employees. The treasurer takes a random sample of 70 workers and finds out that the mean age of the employees sampled is 26.2 years with a standard deviation of 4.6. At 0.01 level of significance, what can the treasurer conclude about the accuracy of the production manager's estimate?
2. A pit crew claims that its average pit stop time (for 4 new tires and fuel) during an auto race is less than 13 seconds. A random sample of 32 pit stop times has a sample mean of 12.9 seconds and a standard deviation of 0.19 second. Is there enough evidence to support the claim of the pit crew at = 0.01?
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