In: Statistics and Probability
The sample mean is and the sample standard deviation is s = 40, and the sample size is n=25.
(1) Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho: μ = 2400
Ha: μ ≠ 2400
This corresponds to a two-tailed test, for which a t-test for one mean, with unknown population standard deviation, will be used.
(2) Rejection Region
The significance level is α=0.05, and the critical value for a two-tailed test is
The rejection region for this two-tailed test is
(3) Test Statistics
The t-statistic is computed as follows:
(4) Decision about the null hypothesis
Since it is observed that ∣t∣ =-7.5 > tc = 2.064, it is then concluded that the null hypothesis is rejected.
Using the P-value approach: The p-value is p=0, and since p = 0 < 0.05, it is concluded that the null hypothesis is rejected.
(5) Conclusion
It is concluded that the null hypothesis Ho is rejected. Therefore, there is enough evidence to claim that the population mean μ is different than 2400, at the 0.05 significance level.