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5. A manufacturer of sprinkler systems used for fire protection in office buildings claims that the true average system-activ

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Answer #1

Step 1:

Ho : \mu = 130 (Claim)

Ha: \mu \neq 130

Step 2: test statistics

n = 9

sample mean = 131.08

population sd = 1.5

Assuming that data is normally distributed and as population sd is given, we will use z stat

z = \frac{\bar{x} - \mu}{\sigma/\sqrt{n}} = \frac{131.08 - 130 }{1.5/\sqrt{9}}

z = 2.160

Step 3: Rejection region:

alpha = 0.01

The z-critical values for a two-tailed test, for a significance level of α=0.01

zc = − 2.58 and zc = 2.58

Reject Ho if z < -2.58 or z > 2.58

Step 4: Conclusion:

As the z stat does not fall in the rejection region, we fail to reject the Null Hypothesis.

Step 5: Decision

Hence we do not have sufficient evidence to believe that the activation time is not equal to 130

Data does not contradict the claim at 0.01 level.

(B) Confidence interval

CI = mean +/ E

E = z * \frac{\sigma}{\sqrt{n}} = 1.960 * \frac{1.5}{\sqrt{9}} = 0.98

CI = 131.08 +/- 0.98

CI = 130.10 , 132.06

As 130 does not fall in the CI range, we reject the Null hypothesis at 95% confidence level.

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