Quality Associates

Hypothesis
Quality Associates, Inc. is a consulting firm that advises its clients about
sampling and statistical procedures that can be used to control
manufacturing processes. In one case, a client provided Quality
Associates with a sample of 800 observations that were taken during a
time when the client's process was operating satisfactorily. The sample
standard deviation for these data was .21, hence, the population
standard deviation was assumed to be .21. Quality Associates then
suggested that random samples of size 30 be taken periodically to
monitor the process on an ongoing basis. By analyzing the new
samples, the client could quickly learn whether the process was
operating satisfactorily. When the process was not operating
satisfactorily, corrective action could be taken to eliminate the problem.
The design specification indicated that the mean for the process should
be 12. The hypothesis test suggested by Quality Associates follows:
H0: =12
Ha: 12
Corrective action will be taken when H0 is rejected. Samples collected
during the first day of operation of the new statistical process-control
procedure are in the file Quality.xls. The URL to this dataset is
A. Conduct a hypothesis test for each sample at the .01 level of
significance and determine what action, if any should be taken,
Answer
H0: =12
Ha: 12
Test Statistic used is Z test
Decision rule: Reject null hypothesis, if the value of test statistic is
greater the critical value.
Details

Sample 1
Z Test of Hypothesis for the Mean
Data
Null Hypothesis = 12
Level of Significance 0.01
Population Standard Deviation 0.21
Sample Size 30
Sample Mean 11.96
Intermediate Calculations
Standard Error of the Mean 0.038340579
Z Test Statistic -1.078057097
Two-Tail Test
Lower Critical Value -2.575829304
Upper Critical Value 2.575829304
p-Value 0.281008276
Do not reject the null hypothesis
Conclusion : Fails to reject the null hypothesis. The sample does not
provide enough evidence to support the claim that mean is significantly
different from 12
Sample 2
Z Test of Hypothesis for the Mean
Data
Null Hypothesis = 12
Level of Significance 0.01
Population Standard Deviation 0.21

Sample Size 30
Sample Mean 12.03
Intermediate Calculations
Standard Error of the Mean 0.038340579
Z Test Statistic 0.747684761
Two-Tail Test
Lower Critical Value -2.575829304
Upper Critical Value 2.575829304
p-Value 0.454650325
Do not reject the null hypothesis
Conclusion : Fails to reject the null hypothesis. The sample does not
provide enough evidence to support the claim that mean is significantly
different from 12 .
Sample 3
Z Test of Hypothesis for the Mean
Data
Null Hypothesis = 12
Level of Significance 0.01
Population Standard Deviation 0.21
Sample Size 30
Sample Mean 11.89
Intermediate Calculations
Standard Error of the Mean 0.038340579
Z Test Statistic -2.895104947
Two-Tail Test

Lower Critical Value -2.575829304

Upper Critical Value 2.575829304
p-Value 0.003790318
Reject the null hypothesis
Conclusion : Reject the null hypothesis. The sample provide enough
evidence to support the claim that mean is significantly different from
12 .
Sample 4
Z Test of Hypothesis for the Mean
Data
Null Hypothesis = 12
Level of Significance 0.01
Population Standard Deviation 0.21
Sample Size 30
Sample Mean 12.08
Intermediate Calculations
Standard Error of the Mean 0.038340579
Z Test Statistic 2.121338159
Two-Tail Test
Lower Critical Value -2.575829304
Upper Critical Value 2.575829304
p-Value 0.033893355
Do not reject the null hypothesis
Conclusion : Fails to reject the null hypothesis. The sample does not
provide enough evidence to support the claim that mean is significantly
different from 12

Thus all the samples have mean 12 except the sample 3. Corrective
action is needed to eliminate the problem in sample 3.
B. Consider the standard deviation for each of the four samples. Does
the assumption of .21 for the population standard deviation seem
reasonable?
Answer
H0: =0.21
Ha: 0.21
Test Statistic used is Chi Square test . Test Statistic =
Decision rule: Reject null hypothesis, if the p value is less than the
significance level .
Chi-square Variance Test : Sample 1
0.04410 hypothesized variance
0.04856 observed variance of Sample 1
30 n
29 df
31.93 chi-square
.6458 p-value (two-tailed)
0.02691 confidence interval 99.% lower
0.10732 confidence interval 99.% upper
Chi-square Variance Test: Sample 2
0.04410 hypothesized variance
0.04856 observed variance of Sample 2
30 n
29 df
31.93 chi-square

.6458 p-value (two-tailed)

0.02691 confidence interval 99.% lower
0.10732 confidence interval 99.% upper
Chi-square Variance Test : Sample 3
0.04410 hypothesized variance
0.04292 observed variance of Sample 3
30 n
29 df
28.22 chi-square
.9881 p-value (two-tailed)
0.02378 confidence interval 99.% lower
0.09486 confidence interval 99.% upper
Chi-square Variance Test: Sample 4
0.04410 hypothesized variance
0.04248 observed variance of Sample 4
30 n
29 df
27.94 chi-square
.9573 p-value (two-tailed)
0.02354 confidence interval 99.% lower
0.09389 confidence interval 99.% upper
Conclusion: The P value is greater than 0.01 for all four samples. Thus
the null hypothesis that population standard deviation is 0.21 is
reasonable.