HYPOTHESES IN THE REAL WORLD: Consider a business of any type. What is a situation where a hypothesis test might help make a decision? Describe the situation. Then you or someone in a reply can make up numbers for that situation and someone else can solve it.
Let us consider a Printing Business.
Suppose the business claims that each ink cartridge prints 1000 pages. Thus it can be a situation where a hypothesis test might help make a decision.
Let the no. of pages each ink cartridge printed over a span of a yeary be as follows:
1024 976 1096 936 985 1004 1105
Can the business have 95 % confidence that the mean no. of pages each ink cartridge prints is not 1000?
null hypothesis: H 0: μ = 1000
alternative hypothesis: H a: not H 0
And we can perform one sample t-test in R using the code:
t.test(x, mu = 1000, alternative = "two.sided")
We will reject H0 at 5% level of significance if p-value is less than 0.05.
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