Consider the following sample data with mean and standard de

Consider the following sample data with mean and standard deviation of 17.0 and 7.4, respectively.

A. Calculate the value of the test statistic. (Round the intermediate z and expected values to 2 decimal places and probability values to 4 decimal places. Do not round any other intermediate calculations. Round your answer to 2 decimal places.)

B. At the 1.0% significance level, what is the decision rule? (Round your answer to 3 decimal places.)

Solution

A.The value of z test statistic is:

z=(mean-mu)/(sigma/root over n)

substitute the respective values to get the z value.

B.At 1% level of significance the the critical values are plus minus 2.58. That is reject the null hypothesis if z<-2.58 or z>+2.58.