Suppose a technician claims that her monthly repairs are less than 50 units, on average. Several of her coworkers do not believe her, so the technician decides to do a hypothesis test, at a 10% significance level, to persuade them. She records data from 16 previous months and works through the testing procedure: H0: μ=50; Ha: μ<50 x¯=41 σ=6 α=0.1 (significance level) The test statistic is z0=x¯−μ0σn√=41−50616√=−6 The critical value is −z0.1=−1.28. Conclude whether to reject or not reject H0, and interpret the results.

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Suppose a technician claims that her monthly repairs are less than 50 units, on average. Several of her coworkers do not believe her, so the technician decides to do a hypothesis test, at a 10% significance level, to persuade them. She records data from 16 previous months and works through the testing procedure:

  • H0: μ=50; Ha: μ<50
  • x¯=41
  • σ=6
  • α=0.1 (significance level)
  • The test statistic is
    z0=x¯−μ0σn√=41−50616√=−6
  • The critical value is −z0.1=−1.28.

Conclude whether to reject or not reject H0, and interpret the results.

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