SIGNIFICANCE TESTING 599
J
For large samples, say, a minimum ofNbeing 30, the
factor
√(
N
N− 1
)
is
√
30
29
which is approximately
equal to 1.017. Thus, for large samplessis very
nearly equal toσˆand the factor
√(
N
N− 1
)
can be
omitted without introducing any appreciable error. In
equations (1) and (2),scan be written forσ, giving:
z=
x−μ
s
√
N
for infinite populations (5)
andz=
x−μ
s
√
N
√(
Np−N
Np− 1
) (6)
for populations of sizeNp
For small samples, the factor
√(
N
N− 1
)
cannot
be disregarded and substitutingσ=s
√(
N
N− 1
)
in
equations (3) and (4) gives:
|t|=
x−μ
s
√(
N
N− 1
)
√
N
=
(x−μ)
√
(N−1)
s
(7)
for infinite populations, and
|t|=
x−μ
s
√√
√√
(
N
N− 1
)
√
N
√(
Np−N
Np− 1
)
=
(x−μ)
√
(N−1)
s
√(
Np−N
Np− 1
) (8)
for populations of sizeNp.
The equations given in this section are parts of
tests which are applied to determine population
means. The way in which some of them are used
is shown in the following worked problems.
Problem 4. Sugar is packed in bags by an auto-
matic machine. The mean mass of the contents
of a bag is 1.000 kg. Random samples of 36
bags are selected throughout the day and the
mean mass of a particular sample is found to
be 1.003 kg. If the manufacturer is willing to
accept a standard deviation on all bags packed
of 0.01 kg and a level of significance of 0.05,
above which values the machine must be stopped
and adjustments made, determine if, as a result
of the sample under test, the machine should be
adjusted.
Population meanμ= 1 .000 kg, sample mean
x= 1 .003 kg, population standard deviation
σ=0.01 kg and sample size,N=36.
A null hypothesis for this problem is that the sam-
ple mean and the mean of the population are equal,
i.e.H 0 :x=μ.
Since the manufacturer is interested in deviations
on both sides of the mean, the alternative hypothesis
is that the sample mean is not equal to the population
mean, i.e.H 1 :x=μ.
The decision rules associated with these hypothe-
ses are:
(i) rejectH 0 if thez-value of the sample mean
is outside of the range of the z-values cor-
responding to a level of significance of 0.05
for a two-tailed test, i.e. stop machine and
adjust, and
(ii) accept H 0 otherwise, i.e. keep the machine
running.
The sample size is over 30 so this is a ‘large sample’
problem and the population can be considered to be
infinite. Because values ofx,μ,σandNare all
known, equation (1) can be used to determine the
z-value of the sample mean,
i.e.z=
x−μ
σ
√
N
=
1. 003 − 1. 000
0. 01
√
36
=±
0. 003
0. 0016
=± 1. 8
Thez-value corresponding to a level of significance
of 0.05 for a two-tailed test is given in Table 62.1
on page 594 and is±1.96. Since thez-value of the
sample is within this range,the null hypothesis is
accepted and the machine should not be adjusted.