A new chemical process has been developed that may increase

A new chemical process has been developed that may increase the yield over that of the current process. The current process is known to have a mean yield of 75 and a standard deviation of 5. It is proposed to run the new process 50 times and then to test the hypotheses

H0: µ = 75

H1: µ > 75

Suppose that the decision is made to reject the null hypothesis if x >77 . When the experiment is conducted, the mean yield is x = 77.5. Use four decimal places in answering the following questions.

A) What is the significance level of the test?

B) What is the observed significance level (P-value)?

Solution