Worked example 1
A coffee machine is supposed to dispense a mean volume of 200 ml. The volume dispensed is believed to be normally distributed. A sample of 8 cups is taken, and the volumes are measured. The sample mean is found to be 197 ml, and the unbiased estimate of the population variance is . Test, at the 5% significance level, whether the mean volume dispensed is less than 200 ml.
Show solution outline
Let be the population mean volume of coffee dispensed.
1. State Hypotheses:
This is a one-tailed test.\
2. Choose Distribution and Significance Level:
Population variance is unknown. Sample size is small. The population is stated to be normal. Therefore, we use a t-distribution.
Significance level, .
Degrees of freedom, .\
3. Calculate the Test Statistic:
Sample mean, .
Unbiased estimate of population variance, , so .
Test statistic:
\
4. Find the Critical Value:
We need the critical value for a one-tailed test at the 5% level with 7 degrees of freedom. From t-distribution tables, . Since our test is for , the critical region is .\
5. Make a Decision and Conclude:
Our calculated test statistic is .
Since , the test statistic does not fall in the critical region.
Therefore, we do not reject .
There is insufficient evidence at the 5% significance level to suggest that the mean volume of coffee dispensed is less than 200 ml.