1. What are the null and alternate hypotheses for this test? Why?
2. What is the critical value for this hypothesis test using a 5% significance level?
3. Calculate the test statistic and the p-value using a 5% significance level.
4. State the decision for this test.
5. Determine the confidence interval level that would be associated with this hypothesis test at the 5% significance level. Explain why the confidence interval level is appropriate for this hypothesis test at the 5% significance level.
6. Create a confidence interval at the confidence level associated with the hypothesis test above.
7. Interpret this confidence interval.
8. Is there enough evidence to support that Method B is more effective? Explain this using the results from both the confidence interval and the hypothesis test.
See the attached file for data.
The solution first gives detailed explanations on all terms relating to the hypothesis testing such as null and alternative hypothesis, test statistic, critical value and confidence interval. Then an exanple is shown to apply all of these terms. Next, another example of hypothesis testing is answered step by step.