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A simple random sample of 100 grocery receipts was drawn from a normal population. The mean and standard deviation of the sample were $120 and $25, respectively. Test the hypothesis H0: u = 125 vs H1:u not = 125 at the 10% significance level.

Test Statistic =

Critical Values(s) =

Conclusion:

Interpretation:

Please help thanks.

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A simple random sample of 100 grocery receipts was drawn from a normal population. The mean and standard deviation of the sample were $120 and $25, respectively. Test the hypothesis H0: u = 125 vs H1:u not = 125 at the 10% significance level.

Test Statistic =(120-125)/25*sqrt(100)= -2

Critical Values(s) =1.645

Conclusion: u is NOT equal to 125.

Interpretation: As the test statistic |z|=2>1.645, we should reject H0: u=125. We conclude that
u is NOT equal to 125.