Solution :
Given that
= 1.08
= 0.99
= 0.28
n = 55
This is the left tailed test .
The null and alternative hypothesis is ,
H0 : = 1.08
Ha : < 1.08
Test statistic = z
= ( - ) / / n
= ( 0.99 - 1.08 ) / 0.28 / 55
= -2.38
The test statistic = -2.38
P ( Z < -2.38 ) = 0.0087
The P-value = 0.0087
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