SOLUTION A] (1) Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho:μ=32500
Ha:μ≠32500
This corresponds to a two-tailed test, for which a z-test for one mean, with known population standard deviation will be used.
(2) Rejection Region
Based on the information provided, the significance level is α=0.1, and the critical value for a two-tailed test is zc=1.64.
The rejection region for this two-tailed test is R={z:∣z∣>1.64}
(3) Test Statistics
The z-statistic is computed as follows:
(4) Decision about the null hypothesis: Since it is observed that ∣z∣=2.473>zc=1.64, it is then concluded that the null hypothesis is rejected.
Using the P-value approach: The p-value is p=0.0134, and since p=0.0134<0.1, it is concluded that the null hypothesis is rejected.
(5) Conclusion: It is concluded that the null hypothesis Ho is rejected. Therefore, there is enough evidence to claim that the population meanμ is different than 32500, at the 0.1 significance level.
B] (1) Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho μ=31500
Ha:μ≠31500
This corresponds to a two-tailed test, for which a z-test for one mean, with known population standard deviation will be used.
(2) Rejection Region
Based on the information provided, the significance level is α=0.1, and the critical value for a two-tailed test is zc=1.64.
The rejection region for this two-tailed test is R={z:∣z∣>1.64}
(3) Test Statistics
The z-statistic is computed as follows:
(4) Decision about the null hypothesis: Since it is observed that z∣=0.982≤zc=1.64, it is then concluded that the null hypothesis is not rejected.
Using the P-value approach: The p-value is p=0.3259, and since p=0.3259≥0.1, it is concluded that the null hypothesis is not rejected.
(5) Conclusion: It is concluded that the null hypothesis Ho is not rejected. Therefore, there is not enough evidence to claim that the population mean μ is different than 31500, at the 0.1 significance level.
17.38 A and B Exercises 409 Excercises 17.38 through 17.41 ask you to answer questions from...