Consider the following hypotheses H0 330 The population is
Consider the following hypotheses:
H0: = 330
The population is normally distributed with a population standard deviation of 72. Use Table 1.
Use a 5% level of significance to determine the critical value(s) of the test. (Round your answer to 2 decimal places.)
Use a 1% level of significance to determine the critical value(s) of the test. (Round your answer to 2 decimal places.)
| Consider the following hypotheses: | 
Solution
a)
Formulating the null and alternative hypotheses,              
               
 Ho:   u   =   330  
 Ha:    u   =/   330  
               
 As we can see, this is a    two   tailed test.      
               
 Thus, getting the critical z, as alpha =    0.05   ,      
 alpha/2 =    0.025          
 zcrit =    +/-   1.959963985   [ANSWER]
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B-1)  
               
 Getting the test statistic, as              
               
 X = sample mean =    349          
 uo = hypothesized mean =    330          
 n = sample size =    100          
 s = standard deviation =    72          
               
 Thus, z = (X - uo) * sqrt(n) / s =    2.638888889 [ANSWER]
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B-2)
As |z| > 1.96, then
OPTION D: Reject H0 since the value of the test statistic is greater than the critical value. [ANSWER, D]
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