SOLUTION: is 40 years old. He asks you to test his thinking. You collect a sample of 50 customers and found that the average age is 38.7. Assuming that the population standard deviation is 1

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Question 776317: is 40 years old. He asks you to test his thinking. You collect a sample of 50 customers and found that the average age is 38.7. Assuming that the population standard deviation is 12.5 years and using α = 0.05, test your manager's hypothesis. What is your conclusion?
H0
μ = 40
H1
μ < 40

Found 2 solutions by oscargut, AnlytcPhil:
Answer by oscargut(2103)   (Show Source): You can put this solution on YOUR website!
Hi, i think that your question is not complete
I can help you but i need to know how the question starts

I can help you with more questions at: mthman@gmail.com
Thanks

Answer by AnlytcPhil(1806)   (Show Source): You can put this solution on YOUR website!
It's complete enough to know what you mean.

H0
μ = 40
 H1
μ < 40
If the mean really is 40 with the standard deviation of 12.5
 then we find the probability that 38.7 would be that low or
lower, and if it's less than 5% of the time, it's too unlikely
and we'll reject the null hypothesis, but if it's not we won't.

Calculate the z-score:

x - m   38.7 - 40
————— = ————————— = -.7353910524
         

1. The first way you have to know the cut off points for the
various alpha error values.

In the case of a left one-tail test with alpha = 0.05 you have to 
have the cut-off point of -1.64, for that's the value that has 0.05 
of the area to the left of it.

2. The second way you find the p-value, which is the area to the
left of the z-score -.735  which is 0.2312, which is higher than
0.05. 

When the p-value is high, the null must fly.
When p-value is low, the null must go

Here the p-value is high, so the null must fly, so we fail to reject 
the null hypothesis.

Edwin


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