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The solution to Test of hypothesis

Given the following hypothesis:

Ho: M = 400

H alternative: M not equal to 400

For a random sample of 12 observations, 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?

Solution Preview

Please see the attached file which has the answers

Given the following hypothesis:

Ho: M = 400

H alternative: M not equal to 400

For a random sample of 12 observations, 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?

Data
Hypthesized mean= 400
Standard deviation= 6
Sample mean= 407
Sample size= 12
Significance level= 0.01 0r 1% ...

Solution Summary

Tests the hypothesis that the mean is not equal to 400.

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