Republic of the Philippines

SOUTHERN LEYTE STATE UNIVERSITY

Sogod, Southern Leyte

GRADUATE SCHOOL
TM 601 – INDUSTRIAL STATISTICS

5. a. 𝐻0 : 𝜇 = 0.50mm.
The null hypothesis that should be challenged with the manager’s test is
that the machine produced ball bearing according to its specification of 0.50mm.
in diameter.

𝐻𝑎 : 𝜇 ≠ 0.50mm.
The alternative hypothesis is established that there may be products
produced by the machine that are not in accordance with the specification either
greater than or less than 0.50mm. in diameter.

b. The Type I error in this situation is rejecting 𝐻0 or the null hypothesis that
ball bearings are equal (=) to 0.50mm. in diameter when it is TRUE. This error
occurs if the manager concludes that the ball bearings are greater or lesser
than 0.50mm. in diameter.

c. The Type II error in this situation is accepting 𝐻0 or the null hypothesis that
ball bearings are equal (=) to 0.50mm. in diameter when it is FALSE. It
occurs if the manager concludes that the ball bearings are equal (=) to 0.50mm.
in diameter.

6. 𝜇 = $108.50; n = 64; 𝜎 = $16

𝑥̅ = $112 𝛼 = 0.05
With 𝐻0 : 𝜇 = $112

𝐻𝑎 : 𝜇 ≠ $112
 Using test statistic z:
𝑥̅ −𝜇0 $112−$108.50
Z= = z = 1.75
𝜎/√𝑛 $16/√64

 Using the standard normal distribution table:

P(z ≥1.75) = 1 – 0.9599 = 0.0401
p – value = 2(0.0401) = 0.0802

Since p – value 0.0802 > 0.05 level of confidence, we do not reject the 𝑯𝟎 .
Thus, the average room price do not vary significantly to $108.50
 Republic of the Philippines
SOUTHERN LEYTE STATE UNIVERSITY
Sogod, Southern Leyte

GRADUATE SCHOOL
TM 601 – INDUSTRIAL STATISTICS

 Using critical value approach:

𝛼/2 = .05/2 = 0.025; Using standard normal distribution table:

-z = -1.96 and z = 1.96.
So: z = 1.75 is within the range or 1.75 is not lesser than -1.96 nor greater
than 1.96. Thus, we cannot reject the 𝑯𝟎 and the average room price do
not vary significantly to $108.50

7. n = 49; 𝑥̅ = 16.2 days; 𝜎 = 5.6; 𝛼 = 0.05; 𝜇0 = 15

a. 𝐻0 : 𝜇 ≤ 15 days
𝐻𝑎 : 𝜇 > 15 days

b. Using test statistic z:

𝑥̅ −𝜇0 16.2−15
Z= = z = 1.5
𝜎/√𝑛 5.6/√49

 Using critical value:

𝛼 = 0.05
𝛼/2 = .05/2 = 0.025
𝑍0.025 = 1.96
Since z = 1.5 < 1.96, we cannot reject 𝑯𝟎 or the null hypothesis.

c. Using the standard normal distribution table, 𝑍1.5 = 0.9332

p – value = (1 – 0.9332) = 0.0668

Since p – value 0.0668 > 𝛼 or 0.05, we cannot reject 𝑯𝟎 or the null

hypothesis.

d. 𝜇 = 17 days; 𝛼 = 0.05; 𝜇0 = 15; 𝜎 = 5.6

𝑥̅ −𝜇0 𝑥̅ −15
Z= =
𝜎/√𝑛 𝜎/√𝑛

𝑍𝛼 = 𝑍0.05 = 1.645 using the standard normal distribution table;

So we reject 𝐻0 if z ≥ 1.645;
𝑥̅ −15
Z= ≥1.645; Solve for 𝑥̅
5.6/√49
 Republic of the Philippines
SOUTHERN LEYTE STATE UNIVERSITY
Sogod, Southern Leyte

GRADUATE SCHOOL
TM 601 – INDUSTRIAL STATISTICS

5.6
𝑥̅ ≥ 15 + 1.645 ( ) = 16.316
√49

So, to accept 𝐻0 , 𝑥̅ must be < 16.316.

16.316−15
Then: z = = - 0. 855
5.6/√49

 So, the z = - 0. 855, the area in upper tail using the standard normal
distribution table is 0.1963 or the probability of Type II error.

8. 𝜇 = 0.50mm; n = 36; 𝜎 = 0.06mm 𝛼 = 0.01

With 𝐻0 : 𝜇 = 0.50mm.

𝐻𝑎 : 𝜇 ≠ 0.50mm.
𝛼/2 = .01/2 = 0.005
𝑍0.005 = 2.576 using the standard normal distribution table;
 Using Minitab:

One-Sample Z: diameters
Descriptive Statistics
N Mean StDev SE Mean 99% CI for μ
37 0.46022 0.06104 0.00986 (0.43481,
0.48562)
μ: mean of
diameters
Known standard deviation = 0.06

Test
Null hypothesis H₀: μ = 0.5
Alternative hypothesis H₁: μ ≠ 0.5
Z-Value P-Value
-4.03 0

 By p – value approach:

p – value or 0.00 < 𝜶 or 0.01. Thus we can reject 𝑯𝟎 . Hence it is out of control.

 By critical value approach:

Z = - 4.03 is lesser than –z ≤ -2.576. Thus we can reject 𝑯𝟎 . Hence it is out of

control.
 Republic of the Philippines
SOUTHERN LEYTE STATE UNIVERSITY
Sogod, Southern Leyte

GRADUATE SCHOOL
TM 601 – INDUSTRIAL STATISTICS

9. Local and Foreign Tuition:

Descriptive Statistics:

Variable N Percent CumPct Mean SE TrMean StDev

Total Count Mean
Local Tuition ($) 25 25 100 100 12375 1556 11970 7778
Foreign Tuitiion 25 25 100 100 16582 1827 16543 9135
($)

Variable Variance CoefVar Sum Sum of Minimum Q1 Median Q3

Squares
Local Tuition ($) 60503872 62.86 309373 5.28E+09 1000 5223 11513 17264
Foreign Tuitiion 83445412 55.09 414545 8.88E+09 1000 8750 17765 22650
($)

Variable Maximum Range IQR Mode N for MOde Skewness Kurtosis MSSD
Local Tuition ($) 33060 32060 12041 * 0 0.62 0.51 49291901
Foreign Tuitiion 33060 32060 13900 16000 2 -0.01 -0.71 83538918
($)
Correlations
Pearson 0.835
correlation
P-value 0

STEPS OF HYPOTHESIS TESTING:

Let 𝝁𝟏 = Local Tuition; 𝝁𝟐 = Foreign Tuition

Step 1. Upper Tail: Lower Tail: Two Tail:

𝐻0 : 𝜇1 - 𝜇2 ≤ 0 𝐻0 : 𝜇1 - 𝜇2 ≥ 0 𝐻0 : 𝜇1 - 𝜇2 = 0
𝐻𝑎 : 𝜇1 - 𝜇2 > 0 𝐻𝑎 : 𝜇1 - 𝜇2 < 0 𝐻𝑎 : 𝜇1 - 𝜇2 ≠ 0
Step 2. At a level of significance of or 𝛼 = 0.05 or confidence level of 95%.
Step 3 and Step 4. Upper Tail:

Test
Null hypothesis H₀: μ₁ - µ₂ = 0
Alternative H₁: μ₁ - µ₂ > 0
hypothesis
T-Value DF P-Value
-1.75 46 0.957
 Republic of the Philippines
SOUTHERN LEYTE STATE UNIVERSITY
Sogod, Southern Leyte

GRADUATE SCHOOL
TM 601 – INDUSTRIAL STATISTICS

Lower Tail:

Test
Null hypothesis H₀: μ₁ - µ₂ =
0
Alternative H₁: μ₁ - µ₂ <
hypothesis 0
T-Value DF P-Value
-1.75 46 0.043

Two Tail:

Test
Null hypothesis H₀: μ₁ - µ₂ =
0
Alternative H₁: μ₁ - µ₂ ≠
hypothesis 0
T-Value DF P-Value
-1.75 46 0.086
Step 5:

a. Upper Tail p – value 0.957 > 𝛼 or 0.05, Thus, we cannot reject 𝐻0 : 𝜇1 - 𝜇2 ≤ 0.

Discussion:
The null hypothesis shows that local tuition is lesser than or equal to foreign
tuition. And it is TRUE because in the data set, local tuition never exceed foreign tuition
that’s why we cannot reject 𝐻0 in upper tail in order to have a correct conclusion.

b. Lower Tail p – value 0.043 < 𝛼 or 0.05, Thus, we can reject 𝐻0 : 𝜇1 - 𝜇2 ≥ 0.

Discussion:
The null hypothesis shows that local tuition is greater than or equal to foreign
tuition. And it is FALSE because in the data set, local tuition never exceed foreign
tuition that’s why we can reject 𝐻0 in lower tail in order to have a correct conclusion.

c. Two Tail p – value 0.086 > 𝛼 or 0.05, Thus, we cannot reject 𝐻0 : 𝜇1 - 𝜇2 = 0.

Discussion:
The null hypothesis shows that local tuition is equal to foreign tuition. And it is
TRUE because in the data set, local tuition also equal to foreign tuition that’s why we
cannot reject 𝐻0 in two tail in order to have a correct conclusion.
 Republic of the Philippines
SOUTHERN LEYTE STATE UNIVERSITY
Sogod, Southern Leyte

GRADUATE SCHOOL
TM 601 – INDUSTRIAL STATISTICS

∑𝑘
𝑗=1 𝑥̅ 𝑗
10. a. 𝑥̿ =
𝑘
(89+95+75+92+99) (60+95+89+80) (75+70+90+78+66+77)
[ + + ]
5 4 6
=
3
= 82.33 ≅ 82

b. ANOVA Table:
Source of Sum of Degree of Mean of F P - value
Variation Squares Freedom Squares
Treatment SSTR k -1 MSTR 𝑀𝑆𝑇𝑅
𝑀𝑆𝐸
Error SSE 𝑛𝑗 - k MSE
Total SST 𝑛𝑗 - 1

Analysis of Variance
Source Adj. Sum of Degree of Adj. F-Value P-Value
Squares Freedom Mean of
Squares
Factor 540 2 270 2.35 0.137
Error 1376 12 114.7
Total 1916 14

Discussion:
There is no significant difference in the average scores of the students
from the three universities because the p – value 0.137 > 𝜶 or 0.05 level of
significance.