Homework Answers
μ = 20000, x = 20950, σ = 4100, n = 120
H0: μ = 20000
H1: μ > 20000 (Option A)
Test statistic: z = (x-μ)/(σ/n^0.5) = (20950-20000)/(4100/120^0.5) = 2.54
p-value (Using Excel function NORM.S.DIST(z, cumulative)) = NORM.S.DIST(2.54, TRUE) = 0.994
Do not reject H0 and conclude that there is not sufficient evidence
In general, H0 would be rejected for significance levels greater than p-value (0.994).
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