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    Test of hypothesis

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    You want to prove that a population mean is not 7. Data is ratio and a large sample size will be used (n = 225). When the sample is done the sample mean is computed to be 7.2 and the sample standard deviation is 1.5. Test the hypothesis using an alpha of 5%. Use formal hypothesis testing and compute the p-value.

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    Solution Preview

    Please see the attached Excel file for further step-by-step details of the solution. Using formal hypothesis testing, the p-value is computed.

    Hypothesized mean= 7
    Standard deviation= 1.5
    Sample mean= 7.2
    Sample size= 225
    Significance level= 5% or 0.05
    Population standard deviation (Known, Not Known = Not Known.

    1) Hypothesis:
    Null Hypothesis: Ho: M = 7 (Mean is 7)
    Alternative Hypothesis: H1: M not equal ...

    Solution Summary

    Using formal hypothesis testing the solution provides a step-by-step computation of the p-value, providing that the population mean is not 7. Please see Excel file attached for further details.