Mathematical Statistics (hypothesis testing)

1. You must use the formulas of Hypothesis Testing

2. A word document of one double-spaced page, edited for spelling and grammar mistakes, in which you explain what you have done with clarity. This should be structured as an essay. You should try to follow these guidelines as closely as possible. This document must include:

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Consider a two-tail test for the population mean:

· – Assume that the population variance is unknown. What are the implications of this assumption?

· – Define the null and alternative hypothesis for a hypothesized value equal to the value of the third observation in your sample(data uploaded).

· – Fix the level of significance equal to:
0.01 if you last digit of the ID is equal to 7, 8 or 9. (last digit of id is 8)

· – Find the critical values for your test.

· – Formulate the decision rule for your test and explain the result.

· – Represent in a figure the critical values and rejection regions for your test,and use the figure to justify whether you reject or not the null hypothesis.

· – Find the test statistic for your two tail test, and indicate whether you reject or not the null hypothesis.

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