CONFIDENCE INTERVAL

PROBLEM 1In a mobile phone manufacturing company, a random sample of 81 phones is taken producing a sample mean of 47 and a sample standard variation of 5.89. Construct a 90% confidence interval assuming that the number of camera phones among normal phones is evenly distributed. Find the interval width?

AnswerHere: s=5.89 x=47 n=81 Formula- x+Z*SD/ n =47+1.65*5.89/81 (Where 1.65=> in the given table, the value for .45 is 1.65) =48.07 (upper limit) Now, =47-1.65*5.89/81 =45.93 (lower limit) Answer- We are 90% confident that the number of camera phones among normal phones will lie between 45.93 and 48.07.

PROBLEM 2In a new food home delivery service business, there is a loss of 12 dollars. Suppose this was resulted from a random sample of 25 households, where the SD is 21 $, compute a 98% confidence interval on this sample result. How wide is the interval? AnswerHere: s=21 x=12 n=25 Formula- x+Z*SD/ n =12+2.33*21/25 =21.78 (upper limit) Now, =12-2.33*21/25 =2.22 (lower limit) Answer- We are 98% confident that the result is within this width.

HYPOTHESIS TESTING (TWO POPULATION)PROBLEM 1A weight reducing cream manufacturing company wanted to see whether the usage of the cream is beneficial or not. They are sceptical about the launch of the same and hence they sampled monthly usage by 6 of its users before and after using the same, where the significance level is .02, find out the change. The results are as followsEMPLOYEE MONTH BEFORE USE MONTH AFTER USE

1 219 235

2 205 186

3 226 240

4 198 203

5 209 221

6 216 205

H0: Sigma = 0 H1: Sigma>= 0

D = {Di/n SD= {(Di-D)*2/n-1 Formula to be used- D- u D/ S/ n Di= 16, -19, 14, 5 12, -11 {Di= 17 D = 17/6= 2.8

 {(Di-D)*2/n-1 =1054.84/5 =14.52095

Here, t test is conducted, D u D/ (SD/ n) =2.83/14.52/2.44 =.6177 So, Ho cannot be rejected. Hence we can say that there is no significant change.

PROBLEM 22 different telecom companies are trying to know the usage of its free calls at night. The first company sampled 90 people and produced an average of 8.5 hours of relief and a sample SD of 18 hours. The second company sampled 80 people producing an average of 7.9 hours of relief and sample SD of 2.1 hours at .05 level of significance. Does the 2nd company have less usage? Ho= u1-u2=0 H1= u1-u2>0 Here, N1=90 X1=8.5 S1=1.8 N2=80 X2= 7.9 S2=2.1

Ho= u1-u2=0 H1= u1-u2>0

Z test= (X1 - X2)-(u1-u2)/ s1*2/n1 + s2*2/ n2 8.5-7.9/ (1.8)*2/90+ (2.1)*2 /80 .06/.30 =1.983

Hence here Ho is rejected.