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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 Preview

    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 ...

    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.