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Chapter 7: Hypothesis Testing - Solutions

Chapter 7: Hypothesis Testing - Solutions Introduction to Hypothesis Testing The problem with applying the techniques learned in Chapter 5 is that typically, the popula- tion mean ( ) and standard deviation ( ) are not known. In Chapter 7, we will be looking at the situation when a simple random sample is taken from a large population with unknown mean and standard deviation. However, the sample mean and sample standard deviation can be calculated. Setup: i) A sample is taken from a population with unknown mean and standard deviation. ii) A claim is made about the true population mean . iii) The claim is tested using the method of Hypothesis Testing , to be explained below. Example: Suppose that an automobile manufacturer advertises that its new hybrid car has a mean gas mileage of 50 miles per gallon.

7.3 Hypothesis Testing for the Mean (Small Samples) In this section, we describe the complete procedure of hypothesis testing when the sample size n<30 and the population is assumed to be approximately normally distributed. The z-table will not be used for small samples, instead the t-table will be used.

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