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Hypothesis testing problems

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The Web-based company Henrietta Balloons has a goal of processing 96% of its orders on the same day they are received.

If 95 out of the next 100 orders were processed on the same day, would this prove that they are exceeding their goal, using a 90% confidence level?

A. Choose the Hypothesis

B. Specify the Decision Rule

C. Calculate the Test Statistic

D. Make the Decision

E. Give an interpretation of the Decision

F. P-value Method
1. Calculate the P-value, what is it?

2. Does that P-value support the Decision in Part D?

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Solution Summary

The solution provides step by step method for the calculation of test statistic and p value . Formula for the calculation and Interpretations of the results are also included.

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One and Two Tailed Tests: Hypothesis Testing Problem

Ho: u = 50
H1: u not = 50
The sample mean is 49, and the sample size is 36. the population standard deviation is 5. Use the .05 significance level.

a. Is this a one or two tailed test.
b. What is the decision rule?
c. What is the value of the test statistic?
d. What is your decision regarding Ho?
e. What is the p-value? Interpret it.

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