SOLUTION: consider the hypothesis test with Null hypothesis H0: u= 500 alternative hypothesis H1 u not equal 500 (this is two-tailed test) In a random sample of 81 subjects, the sampl

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Question 884233: consider the hypothesis test with
Null hypothesis H0: u= 500
alternative hypothesis H1 u not equal 500 (this is two-tailed test)
In a random sample of 81 subjects, the sample mean found to be x=492. Population standard deviation is 36.
1. Calculate test statistics and find p-value for this test
2. With significance level a=0.02 (two tail test) make the decision: accept or reject H0. Explain your decision.

Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
test assumption is that the mean is not equal to 500.
sample size = 81
sample mean = 492
population standard deviation = 36.

standard error = population standard deviation divided by square root of sample size = 36 / sqrt(81) = 36/9 = 4

z score = (sample mean minus popjulation mean) / standard error = (492 - 500) / 4 = -8/4 = -2

test alpha = .0228 from the z score table. this is the area under the distribution curve that is to the left of a z score of -2.

since the critical alpha = .02 and the test alpha is greater than this, the results are not statistically significant and you do not reject the null hypothesis in favor of the alternate hypothesis.

z score table used can be found at the following link:
http://lilt.ilstu.edu/dasacke/eco148/ztable.htm