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Hypothesis Testing of Population Mean

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Suppose that we wish to test Ho: µ = 40 versus Ho µ ≠ 40, where σ is known to equal 18. Also, suppose that a sample of n = 81 measurements randomly selected from the population has mean of x bar = 35.

(a). Calculate the value of the test statistic z.
(b). By comparing z with a critical value, test Ho versus Ha at α= .05.
(c). Calculate the p-value for testing Ho versus Ha.
(d). Use the p-value to test Ho at each ? (standard deviation) = .10, .05, .01, and .001.
(e). How much evidence is there that Ho: µ = 40 is false and Ha: µ ≠ 40 is true?

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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