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# Hypothesis Testing of Population Mean: Z Test

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According to news reports, Las Vegas betting parlors increased the number of proposition (prop) bets available to gamblers for this year's Super Bowl (Example: Which team will be the first to suspend a starting player for a team rules violation?). It is believed that the mean number of prop bets per typical gambler is normally distributed with a mean of 7 and a standard deviation of 5. A survey of the first 36 gamblers to place bets on Super Bowl Sunday at the Mirage indicated that the sample mean number of such prop bets was 9. At the 0.05 level of significance, is the population mean number of prop bets per gambler more than 7. Complete the following as part of the solution process:

a. State the null hypothesis and the alternative hypothesis.

b. Is this a one tail or a two tail test. (Explain)

c. Follow the 5 Step Procedure for testing a Hypothesis:
1. State the Null Hypothesis (H0) and the Alternative Hypothesis (H1).
2. Select a level of significance.
3. Select the Test Statistic.
4. Formulate the Decision Rule.
5. Make a Decision.
Show all results for each of the steps.

d. What would be the final decision and why.