In: Statistics and Probability
Solution:
Since the population SD i.e σ is known , we use z test .
H0:μ=30 versus Ha:μ≠30
The test statistic z is given by
z =
= (32.05 - 30) / (3/9)
= 2.05
Now , observe that ,there is sign in H1. So , the test is two tailed.
For two tailed test :
p value = 2 * P(Z < -z)
= 2 * P(Z < -2.05)
= 2 * 0.0202
= 0.0404
Given level of significance is 1% i.e. 0.01
p value is greater than 0.01
In this case , we do not reject H0
Answer :
H0 should not be rejected because the P-value is greater than 0.01.
Option (b) is correct.