Calculating critical value and stating decision rule under the normal distribution
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A random sample is obtained from a population with a variance = 625, and the sample mean is computed. Test the null hypothesis Ho: u = 100 versus the alternative hypothesis H1: u > 100 with alpha = 0.05. Compute the critical value xc and state your decision rule for the following options: 1) n=25 2) n=16 3) n=44 4) n=32
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The solution gives detailed steps on calculating critical value and stating decision rule under the normal distribution.
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Since we already know the population variance which is 625, we need to use the normal distribution.
So at alpha=0.05, the critical value is 1.645 from normal table since this is a one-tailed test. ...
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