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Hypothesis Test

If when you do a Hypothesis test about the Population Mean, somehow you have the actual value for the Population Standard Deviation. Suppose that you were able to get a sample of size 100, and did not know the Population Standard Deviation. What can you do to still carry out the Hypothesis test?

Solution Preview

Let's assume that the mean of samples is M, and the Population Mean is m.
<br>Then H0: m = M against H1: m<>M
<br>We will construct the confidence interval of the mean M. If m falls within the interval, we can accept H0; if not, we reject it.
<br>To construct the confidence interval, we should estimate the standard deviation s first. When s is known, the formula:
<br>M - z*s < m < M + z*s
<br>is used for a confidence interval. ...

Solution Summary

The solution addresses when you do a Hypothesis test about the Population Mean, somehow you have the actual value for the Population Standard Deviation. Suppose that you were able to get a sample of size 100, and did not know the Population Standard Deviation. What can you do to still carry out the Hypothesis test?

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