SOLUTION: A study of sample of 196 bank accounts showed the average size of bank accounts is Rs. 7542. From the previous studies of bank accounts, it is known that the standard deviation is

Question 1172794: A study of sample of 196 bank accounts showed the average size of bank accounts is Rs. 7542. From the previous studies of bank accounts, it is known that the standard deviation is Rs. 2984. Test the hypothesis that μ = Rs. 8000 against the hypothesis μ ≠ 8000. Use a 1% level of significance.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Ho: mu=8000
Ha: mu NE 8000
alpha=0.01 p{reject Ho|Ho true}
test is a z.
critical value is |z|>2.576
calculation is z=(x-mean)/sigma/.sqrt(n)
=(-458)*sqrt(196)/2984; sqrt (196)=14
=2.149
fail to reject Ho; insufficient evidence that the difference is > 8000 at the 1% level.
p-value=0.03.
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