There is always some contention about the value of a parameter or the relationship between parameters. When parametric values are unknown we estimate them through sample values. If the Sample value is exactly the same as per our contention there is no high in accepting it. Any assumption about the parameter are probability function such a procedure is known as testing of hypothesis.
Given information
Sample size n = 125
sample mean "\\bar{x} = 89.2"
Population mean μ =84.5
Sample standard deviation s = 17.4
Now we need to test z-test for single mean for 1% level of significance because it is a large sample test.
"H_0: \u03bc = 84. 5 \\\\\n\nH_1: \\mu > 84.5"
Level of significance α = 0.01
Test statistic
"Z = \\frac{\\bar{x} - \\mu}{s \/ \\sqrt{n}} \\\\\n\nZ = \\frac{89.2-84.5}{17.4 \/ \\sqrt{125}} = 3.02"
Read the Z-table value at 1% level of significance for Right tailed test is "Z_{tab} = 2.33"
Conclusion:
"Z > Z_{tab}"
We reject H0.
Z falls in a rejection region.
There is significance difference between sample mean and population mean.
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