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Hypothesis Testing : analysis

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Given the following hypothesis:

H0: µ<10
H1: µ>10

For a random sample of 10 observations, the sample mean was 12 and the sample standard deviation 3. Using the .05 significance level:

a. State the decision rule.
b. Compute the value of the test statistic.
c. What is your decision regarding the null hypothesis?

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Solution Summary

Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.

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Please see the attachments for easy readability.

a. State the decision rule.
Decision rule: Reject the null hypothesis if the calculated value of t is greater than the critical value of t.
b. Compute ...

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