Lightbulbs of a certain type are advertised as having an average lifetime of 750 hours. The price of these bulbs is very favorable, so a potential customer has decided to go ahead with a purchase arrangement unless it can be conclusively demonstrated that the true lifetime is smaller than what is advertised. A random sample of 60 bulbs was selected. In this sample, the mean lifetime was 741.8 and the standard deviation was 19.2. What conclusion would be appropriate for a significance level of 0.01?
a) State the Null and Alternative hypothesis.
b) Draw the picture to state the rejection region for a significance level of 0.01.
c) Find the Test statistic value z.
d) Find the P-value (observed significant level) .
e) Find the critical value.
f) Decide whether H_0 (null hypothesis) should be rejected, and state this conclusion in the problem context.
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