Suppose you want to test the claim that u

Suppose you want to test the claim that u<65.4. Given a sample size of n=35 and a level of significance of a=0.01, when should you reject H0?

Solution

If population standard deviation is known:

z-test will be used.

Test is left tailed. So critical value for a level of significance of a=0.01 is -2.33.

So reject H0 when z-value < -2.33

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If population standard deviation is unknown:

t-test will be used.

Test is left tailed. degree of freedom is df=35-1=34. So critical value for a level of significance of a=0.01 is -2.4411.

So reject H0 when t-value < -2.4411