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State a hypothesis as an example and then design required steps that you need to follow...

State a hypothesis as an example and then design required steps that you need to follow for making decision to reject or do not reject it. Just explain, numerical calculations are not required.

math   Statistics-And-Probability   
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Answer #1

Null hypothesis is rejected when Xbar > mu + z * sd/sqrt(n)

z = 1.645 for alpha = 0.05

65 + 1.645 * 22.1/sqrt(169)

= 67.7965

Xbar > 67.7965

We will collect sample , if sample mean exceeds 67.7965

then we will reject the null hypothesis

firm will not open branch if Xbar < 67.7965

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