Hypothesis Test μ ≤ 10 – Solve Test Statistic

Given the following hypotheses:

  • H0 : μ ≤ 10
  • H1 : μ > 10

A random sample of 10 observations is selected from a normal population. The sample mean was 12 and the sample standard deviation 3. Using the .05 significance level:

Look closely at the formulas in the excel spreadsheet cells below. First we solve for the critical value, then the test statistic, then make our decision regarding H0. 

solving the critical value and test statistic in excel

State the decision rule

Reject H0  if z > 1.64

Compute the value of the test statistic.

2.108

What is your decision regarding the null hypothesis?

Reject H0. There is insufficient  evidence to conclude that the population mean is greater than 10.

 
  • Student: Not Provided
  • Textbook: Statistical, Techniques in Business & Economics
  • Course: QNT 351
 
 

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