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Consider the following hypotheses: H_0: mu le 20.4 H_A: mu > 20.4 A sample of 50

ID: 3159804 • Letter: C

Question

Consider the following hypotheses: H_0: mu le 20.4 H_A: mu > 20.4 A sample of 50 observations yields a sample mean of 21. Assume that the sample is drawn from a normal population with a known population standard deviation of 5.3 and that alpha = 0.10 we're going to conduct this test using the P-value approach. The hypotheses have already been given to you, but tell me what type of test this is left-tailed, right-tailed, or two-tailed? What is the significance level? Under what conditions will we reject H_0 Calculate the test statistic and p-value. What is your conclusion?

Explanation / Answer

a)

Formulating the null and alternative hypotheses,              
              
Ho:   u   <=   20.4  
Ha:    u   >   20.4  
              
As we can see, this is a    right   tailed test. [ANSWER]

We can tell as Ha used >.

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b)      
              
Thus, getting the critical z, as alpha =    0.1   ,      
alpha =    0.1   [SIGNIFICANCE LEVEL]      

Hence, by table/technology,

zcrit =    +   1.281551566      

Hence, we reject Ho when z > 1.282. [REJECTION REGION]

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c)
              
Getting the test statistic, as              
              
X = sample mean =    21          
uo = hypothesized mean =    20.4          
n = sample size =    50          
s = standard deviation =    5.3          
              
Thus, z = (X - uo) * sqrt(n) / s =    0.800498243 [ANSWER, TEST STATISTIC]          
              
Also, the p value is              
              
Pvalue =    0.211711091   [ANSWER, P VALUE]

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d)      
              
As z < 1.282, P > 0.10, we   FAIL TO REJECT THE NULL HYPOTHESIS.          

There is no significant evidence that the true mean is greater than 20.4 at 0.10 level. [CONCLUSION]

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