Answer)
Null hypothesis Ho : u>=10%
Alternate hypothesis Ha : u <10%
Given mean = 9.83%
S.d = 0.5%
As the population s.d is unknown here we can use t distribution to conduct the test
Test statistics t = (sample mean - Claimed mean)/(s.d/√n)
test statistics t = (9.83 - 10)/(0.5/√25) = -1.7
Degrees of freedom is = n-1 = 25-1 = 24
For 24 degrees of freedom and -1.7 test statistics
P-Value from t distribution is = 0.051028
We reject null hypothesis when P-Value is less than the given significance level
If significance level is 1% (0.01
Then p-value is greater than 0.01
And we fail to reject the null
So we have enough evidence to conclude that mean is >= 10
If significance level is 0.1 (10%)
Then p-value is less than it
So we reject the null hypothesis
We do not have enough evidence to conclude that mean is >= 10
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