Question: Let X 1 , X 2 , X 3 , X 4 , X 5 be a random sample from a N(, 1) distribution, where

Let X1, X2, X3, X4, X5 be a random sample from a N(μ, 1) distribution, where μ is unknown. Suppose that we have observed the following values 

5.45, 4.23, 7.22, 6.94, 5.98

We would like to decide betweenHo:  =  = 5, H:  + 5.

a. Define a test statistic to test the hypotheses and draw a conclusion assuming α = 0.05.

b. Find a 95% confidence interval around X̅. Is μ0 included in the interval? How does the exclusion of μ0 in the interval relate to the hypotheses we are testing?

Ho: = = 5, H: + 5.

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