The 95% confidence interval for the population mean was calculated based on a random sample with sample size of n=31 as (50 to 60). Calculate the outcome of a 2 sided alpha=0.05 test based on the null hypothesis of H0: mean=55, and determine if:
A.We would reject the null hypothesis.
B. We would accept the null hypothesis.
C. We woudl fail to reject the null hypothesis.
D. Not enough information to decide.
The answer is
We would fail to reject the null hypothesis
Reason:
Since the 95% confidence interval for population mean based on sample contain the hypothesised mean ( 55)
That means the our test statistic is in acceptance region with alpha = 0.05
So with (1-0.05)% that is 95% confidence we can say that there is no significant difference between the observed value and hypothesised value
If the 95% confidence interval doesn’t contain the hypothesised value, test statistic is in rejection region , we reject the null hypothesis
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