UNIVERSITY OF ELDORET

UNIVERSITY EXAMINATIONS 2020/2021

FOURTH YEAR FIRST SEMESTER EXAMINATION FOR THE

DEGREE OF BACHELOR OF SCIENCE IN ACTUARIAL SCIENCE/COMPUTER
SCIENCE/EDUCATION ARTS/ECONOMICS

STAT 411: TESTS OF HYPOTHESES

DATE: APRIL 2021 TIME: 3 HOURS
INSTRUCTIONS: ANSWER ALL QUESTIONS IN SECTION A AND ANY OTHER THREE
QUESTIONS IN SECTION B

SECTION A (31 MARKS)

QUESTION ONE (15 MARKS)

a) Define the following terms:
i) Type I error [1 mark]
ii) Type II error [1 mark]
iii) Most powerful test [2 mark]

b) Suppose we want to carry out the following hypothesis test for the mean,
 , of a normal distribution, with known variance,  2 = 125; H0:  = 100
and H1:  > 100. Suppose we decide to take a sample of size 36 and the
level of significance, at =0.05.

i) What is the critical region? [2 marks]

ii) What is the power of the test at  = 110? [2 marks]

c) In Comparing the variability of the tensile strength of two kinds of of structural

steel, an experiment yielded the following results: , the sample
variance of the first sample was Assuming that the
measurement constitutes an independent random sample from normal population.
Test the null hypothesis that:
Against at [3 marks]
d) Researchers are interested in the mean age of a certain population. A random
sample of 10 individuals drawn from the population of interest has a mean of 27.
Assuming that the population is approximately normally distributed with variance
20; can we conclude that the mean is different from 30 years? (α=0.05). If the p -
value is 0.0340 how can we use it in making a decision? [3 marks]
e) Differentiate between point and interval estimation [1 mark]
 QUESTION TWO (16 MARKS)

a) A study was conducted of the effects of a special class designed to aid students
with verbal skills. Each child was given a verbal skills test twice, both before and
after completing a 4-week period in the class. Let Y = score on exam at time 2 -
score on exam at time 1. Hence, if the population mean  for Y is equal to 0, the
class has no effect, on the average. For the four children in the study, the observed
values of Y are 8-5=3, 10-3=7, 5-2=3, and 7-4=3 (e.g. for the first child, the scores
were 5 on exam 1 and 8 on exam 2, so Y = 8-5=3). It is planned to test the null
hypothesis of no effect against the alternative hypothesis that the effect is positive,
based on the following results from a computer software package:

Variable No. of cases Mean Std.dev Std.Error

Y 4 4 2.000 1.000

i. Set up the null and alternative hypotheses (2 marks)

ii. Calculate the test statistic, and indicate whether the P-value was below 0.05, based
on using the appropriate table (2 marks)
iii. Make a decision, using P_value of = .05. Interpret. (2 marks)
iv. If the decision in (c) is actually (unknown to us) incorrect, what type of error has
been made? What could you do to reduce the chance of that type of error?
(2 marks)
v. Let X 1 , X 2 ,..., X n be a random sample from a Poisson distribution. You are required

to Find the most powerful test for testing

H 0 :   0
(8 marks)
H 1 :   1

SECTION B (39 MARKS)

QUESTION THREE (13 MARKS)
A feeding test is conducted on a herd of 25 dairy cows to compare two diets, A and B.
Samples of 13 cows randomly selected from the herd are fed diet A and the remaining
cows are fed with diet B. From observations made over a three-week period, the
average daily milk production (in L) is recorded for each cow: Milk Yield (in L)

Diet A (x1): 44 44 56 46 47 38 58 53 49 35 46 30 41
Diet B (x2): 35 47 55 29 40 39 32 41 42 57 51 39
Assume these two samples come from independent normally distributed populations
with equal variances _2.
(i) Find the mean and the standard deviation (SD) for each sample above. (4 marks)
2
sp
(ii) Find an estimate of the ‘pooled variance’ , which estimates the common variance
2 (4 marks)
(iii) Perform the two-sample t-test to investigate the evidence of a difference in true
mean milk yields for the two diets and make the correct justification on the two types
of diet (5 marks)

QUESTION FOUR (13 MARKS)

a) Distinguish between independent and paired sample T-test (2 marks)
b) A study was conducted to investigate the effectiveness of hypnotism in reducing
pain. Results for randomly selected subjects are shown in the table. The "before"
value is matched to an "after" value
Subject 1 2 3 4 5 6 7 8

Before 6.6 6.5 9.0 10.3 11.3 8.1 6.3 11.6

After 6.8 2.4 7.4 8.5 8.1 6.1 3.4 2.0

Difference 0.2 -4.1 -1.6 -1.8 -3.2 -2.0 -2.9 -9.6

i. Formulate the null and the alternative hypothesis (2 marks)

ii. Assuming percentage marks to be normally distributed, investigate the claim
that the educational computer package produces an improvement in pupils
understanding of geometry (4 marks)
iii. What is your conclusion in this study? (2 marks)
iv. Calculate a 95% confidence interval on the difference in means. Provide a practical
interpretation of this interval (3 marks)

QUESTION FIVE (13 MARKS)

a) Let P denote the probability of success in an experiment to be performed thrice. To
test the hypothesis : against : , the null hypothesis is rejected if
the number of successes in the three trials is less than 3.
 i. Compute the probability of two types of errors likely to be committed.
[2 marks]
ii. Compute the power of the test. [2 marks]
iii. What measures should be taken to reduce the two types of errors
Simultaneously. [2marks]
b) Let x1,x2…..xn be a random sample form a random variable x which is normally

and variance  =1. Test the hypothesis

2
distributed with unknown mean
against at % level of significance. [7marks]

QUESTION SIX (13 MARKS)

a) A particular pesticide is commonly used to treat infestations of the German

cockroach, Blattella germanica. A study is carried out to investigate the persistence
of this pesticide on various types of surfaces. Researchers applied a 0.5% emulsion
of the pesticide to glass and plasterboard. After 14 days, the placed 36 cockroaches
on each surface. The number of dead cockroaches was recorded after two days. On
glass 18 died, on the plasterboard 26 died. Is there a difference in mortality
between the two surfaces?

i. Formulate the null and the alternative hypothesis (2 marks)

ii. Compute a 95% confidence interval for the difference in mortality between the
two surfaces. (3 marks)
iii. Carry out an hypothesis at the 5% level of significance to test whether there is a
difference between the two surfaces (4 marks)
b) Suppose a customer advocacy group would like to conduct a survey to find the
proportion p of consumers who bought the newest generation of computers were
happy with their purchase. How large a sample should they take to estimate p with
2% margin of error (4 marks)

QUESTION SEVEN (13 MARKS)

a) Let X and Y be two independently distributed random variables with distributions
] and Y~ [  2 ,  2 ] respectively. Let x1 x2 ….. xm be a random sample of
2
X ~N [
size m from X and y1, y2, ….., xn be another independent random sample of size n
from Y.Derive the likelihood ratio test for testing H0:  2 = 1 against H1: 1   2 ,
 Assuming  1 =  2 =  2
2 2
[9 marks]

b) The following statistics were obtained from data drawn from two independent
populations X and Y which are normally distributed as follows: X ~N [ 1 , ]
and Y~ [  2 , ]

m
X = 1.02, (X
i 1
1  X ) 2 = 2.44, m = 11
n
Y = 1.66,  (Y
i 1
1  Y )2 = 4.23, n = 13

Test H0: 1 =  2 against H1: 1   2 . Use = 5% [4 marks]