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A drug company is considering marketing a new local anesthetic. The effective time of the anesthetic...

A drug company is considering marketing a new local anesthetic. The effective time of the anesthetic the drug company is currently producing has a normal distribution with an average of 7.4 minutes with a standard deviation of 1.2 minutes. The chemistry of the new anesthetic is such that the effective time should be normal with the same standard deviation, but the mean effective time may be lower. If it is lower, the drug company will market the new anesthetic; otherwise, they will continue to produce the older one. A hypothesis test was done to help make the decision. A sample of 20 produced a mean, Xbar , of 7.5 minutes. They used an alpha of 0.05.

Given the null and alternative hypotheses they can

Reject the null hypothesis

Stop. Xbar is on the same side as the null hypothesis

perform a t test

Because the distribution is normal, they can use either a t or Z test.

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