Consider the following null and alternative hypotheses:
Ho: µ = 120 versus H1: µ > 120
A random sample of 81 observations taken from this population produced a sample mean of 123.5. The population standard deviation is known to be 15.
a. If this test is made at a 2.5% significance level, would you reject the null hypothesis? Use the critical-value approach.
b. What is the probability of making a Type I error in part a?
c. Calculate the p-value for the test. Based on this p-value, would you reject the null hypothesis if α = .01? What if α = .05?

  • CreatedAugust 25, 2015
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