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    5 Step Hypothesis Test

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    Test the null hypothesis that a population mean is 50 against the alternate hypothesis that the mean is not 50.

    The data is of ratio level.

    A sample of 400 showed a sample mean of 51.5 and a sample standard deviation of 10.

    Use the full, formal hypothesis testing format.

    What "model" should be used and why?

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    Solution Preview

    5-Step Hypothesis Test
    Step1: State the Null and Alternate Hypothesis:
    Null Hypothesis: The population mean is 50.
    H_0: μ=50
    Alternate Hypothesis: The population mean is not 50.
    H_a: μ≠50
    Step2: Formulate an Analysis Plan:
    Since the data has been measured in ratio scale and sample size, n > 30, the distribution can be assumed to be a normal ...

    Solution Summary

    The solution provides step-by-step method of performing a 5 step hypothesis test. All the steps of hypothesis testing (formulation of null and alternate hypotheses, selection of significance level, choosing the appropriate test-statistic, decision rule, calculation of test-statistic and conclusion) have been explained and the statistical analysis has been shown in details. The calculations have also been shown in Interactive EXCEL sheet for better understanding.