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Statistics: Given a hypothesis, state the decision rule and compute test statistic

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Given the following hypothesis:

Ho: u = 400
H1: u =/= 400

A random sample of 12 observations is selected from a normal population. The sample mean was 407 and the sample standard deviation 6. Using the .01 significance level:

a. State the decision rule.

b. Compute the value of the test statistic.

c. What is your decision regarding the null hypothesis?

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Solution Summary

The solution provides step by step methods for the calculation of testing of the hypothesis. Formula for the calculation and interpretations of the results are also included. An interactive Excel sheet is included. The user can edit the inputs and obtain complete results for a new set of data.

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