# Decision Rule and Test Statistics

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16. Given the following hypothesis: ho:Âµ=400, h1: Âµ≠400

For a random sample of 12 observations, the sample mean was 407 and the sample standard deviation 6. Using the .01 significance level:

1. State the decision rule.

2. Compute the value of the test statistic.

3. What is your decision regarding the null hypothesis?

b. From past experience a television manufacturer found that 10 percent or less of its sets needed any type of repair in the first two years of operation. In a sample of 50 sets manufactured two years ago, 9 needed repair. At the .05 significance level, has the percent of sets needing repair increased? Determine the p-value.

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#### Solution Summary

The decision rule is stated. The value of the test statistics is computed.

$2.49