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Description of Hypothesis Testing: Five step method T test

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A vinyl siding company claims that the mean time to install siding on a medium-size house is at most 20 hours with a standard deviation of 3.7 hours. A random sample of 40 houses sided in the last three years has a mean installation time of 20.8 hours. At the 0.05 significance level, can a claim be made that it takes longer on average than 20 hours to side a house?

a. State the null and alternate hypotheses.

Ho:
H1:

b. State the decision rule

c. Compute the value of the test statistic.

d. Formulate the decision rule.

e. What is your decision regarding the null hypothesis? Interpret the result.

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Solution Summary

The solution provides a step by step method for the calculation of a T test. Formula for the calculation and interpretation of the results are also included.

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