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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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