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Hypothesis Testing of Mean

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For the following problem statement, identify the hypothesis H0 and the alternative hypotheses H1.

Suppose that a company claims that their weekly losses are no more than $2,500. A sample of 40 random weeks finds a mean weekly loss of $3,200 with an estimated population standard deviation of $750. Test their claim at the a=0.05 level.

H0: (&#956;, &#963;,or p),( &#8800;,&#8804;,&#8805;,<, or =), ($3,200, $2,500, 40, 0.05, 750)
H1: (&#956;, &#963;,or p),( &#8800;,&#8804;,&#8805;,<, or =), ($3,200, $2,500, 40, 0.05, 750)

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For the following problem statement, identify the hypothesis H0 and the alternative hypotheses H1.
Suppose that a company claims that their weekly losses are no more than $2,500. A sample of 40 random weeks finds a mean weekly loss of $3,200 with an estimated population standard deviation of $750. Test their claim at a=0.05 level.
H0: (μ, σ,or p),( ≠,≤,≥,<, or =), ($3,200, ...

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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