An electrical firm manufactures light bulbs that have a length of life that is approximately normally distributed with a mean of 800 hours and a standard deviation 40 hours. Test the null hypothesis that =800 hours against the alternative ≠800 hours if a random sample of 20 bulbs have an average of 700 hours. Use alpha = 0.05 level of significance.
The following null and alternative hypotheses need to be tested:
This corresponds to a two-tailed test, for which a z-test for one mean, with known population standard deviation will be used.
Based on the information provided, the significance level is and the critical value for a two-tailed test is
The rejection region for this two-tailed test is
The z-statistic is computed as follows:
Since it is observed that it is then concluded that the null hypothesis is not rejected.
Using the P-value approach:
The p-value is and since it is concluded that the null hypothesis is not rejected.
Therefore, there is not enough evidence to claim that the population mean is different than 800, at the significance level.
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