Given: }=504,n=100, =500, = 25
Step 1: state the hypothesis
H0: μ=500
H1: μ>500
Step 2:Name of the test
since population standard deviation is known, we use one sample z test.
Step 3: Test statistic:
z=
=
=1.6
Step 4: Critical value:
since H1 has >, it is right tailed test, so find 1-a=1-0.05=0.95
Look up the area from Step in the z-table. The area is at z=1.645. This is your critical value for a confidence level of 5%
Step 5: conclusion:
since test statistic < critical value , null hypothesis is not rejected
Therefore, there is not enough evidence to claim that the population mean
μ is greater than 500, at the 0.05 significance level.
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