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Worked solution
Identify the population parameter under test
The null hypothesis fixes the value of the population mean.
Decide whether the test is one- or two-tailed
The wording tells us the direction of the alternative hypothesis.
Write the null hypothesis
The null hypothesis always states equality with the claimed value.
Write the alternative hypothesis
The alternative captures the suspected change in the mean.
Recall the distribution of the sample mean
For a normal population the sample mean is normal with variance \(\sigma^2/n\).
Recall the mean of the sample mean
The sample mean is an unbiased estimator of the population mean.
Recall the standard error
The standard deviation of the sample mean is called the standard error.
Recall the test statistic
Standardising the sample mean under \(H_0\) gives a z statistic.
Note the statistic is standard normal under the null hypothesis
Under \(H_0\) the standardised sample mean follows the standard normal distribution.
Recall how to read a critical value
Critical values come from the inverse normal function.
Recall the decision rule
We compare the test statistic (or p-value) with the critical value (or alpha).
Recall the meaning of the p-value
The p-value measures how surprising the data are if \(H_0\) is true.
Recall the p-value decision rule
A p-value below the significance level indicates a significant result.
State the known-variance assumption
A z-test is appropriate because the population standard deviation is known.
State the correct hypotheses
This pair matches the claim and the suspected departure from it.