We wish to test the hypothesis H0:μ≤−500 at the 8% level. From a large sample of...
We wish to test the hypothesis H0:μ≤−500 at the 8% level. From a large sample of data (i.e., n>30), the test statistic for the hypothesis test is calculated as −2.1. What is the conclusion?
A. More information is required
B. Reject H0
C. Reject H0 but only if x¯>497.9
D. Accept H0
Homework Answers
Solution:
Given:
Null hypothesis:
H0:μ ≤ −500
Alternative hypothesis would be
Ha:μ > −500
Level of significance = 
Test statistic = z = -2.1
As sample size is large (n>30), we need to use p-value which should be calculated using standard normal table or excel,
Using excel, =1-NORMSDIST(-2.1)
P-value = 0.982
Decision: P-value > 0.08 Accept H0.
Option D is correct
Done
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