Sinve the population is normally distributed and standart deviation is known, we can use Z-statistic
Null hypothesis:
Alternative hypothesis:
Test statistic: , where u - sample mean, - claimed mean, n - sample size, σ - standard deviation
In our case:
Due to the form of the alternative hypothesis, left-tailed test is appropriate
The critical value can be found as , where - level of significance, - critical value
In our case: = - 2.33
Since < , we reject the null hypothesis.
There are statistically significant evidence that the population mean is now less than 50
Comments