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    Critical value and decision rule

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    As a part of a class project, your statistics instructor asks you to weigh a sample of 100 items from a shipment of 500. You are testing the null hypothesis that the mean is greater or equal to 10 lbs. You are given that the standard deviation is 0.05 lb. Accepting H0 is the same as accepting the shipment.

    A) using a significance level of alpha =.05 lb, determine the critical value for the applicable test statistics and express the decision rule.

    B) What action you should take: 1) if x-bar =10.1 lb, 2) x-bar =9.95 lb, 3) x-bar =9.85 lb.

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    Solution Summary

    This solution shows how to find the critical value of the test described and how to apply the decision rule to possible outcomes of the hypothesis test.