1. The following information is available.
H0: µ = 50
H1: µ ≠ 50
The sample mean is 49, and the sample size is 36. The population standard deviation is 5. Use a 0.05 significance level.
Answer the questions:
(a) Is this a one- or two-tailed test?
This is a TWO-tailed test because of the "≠"
(It is one-tailed when H1 has > or <
(b) What is the decision rule?
We reject H0 if the test statistic is either greater
than 1.96 or less than -1.96, for those are the z-values
each of which has half the .05, or .025, of area beyond
them. If the test statistic is between -1.96 and 1.96,
we fail to reject H0.
(c) What is the value of the test statistic?
(d) What is your conclusion (in plain English) regarding H0?
We fail to reject H0 because -1.2 is between -1.96 and 1.96.
Edwin
