Step 1 – State Hypothesis in context of the problem.
Step 2 – Gather data, check assumptions, and find rejection region using α.
Step 3 – Calculate the appropriate test statistic and p-value.
Step 4 – State conclusion in context of the problem.
Step 1
Step 2
Step 3
Step 4
Lets consider the question,
Step 1 : Null hypothesis : Ho : = 2.3
Step 2 : Alternative hypothesis : Ha : 2.3
Step 3 : Perform 1 sample Z test because population standard deviation is known
One-Sample Z
Test of mu = 2.3 vs not = 2.3
The assumed standard deviation = 0.5
N Mean SE Mean 99% CI Z P
49 2.10000 0.07143 (1.91601, 2.28399) -2.80 0.005
Step 4 : Since p value (.005) is less than .01 we reject the null hypothesis and conclude that adding additive does not increase mileage to 2.3. In fact it is less than 2.3.
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