A company which produces batteries claims that the life expectancy of their batteries is 90 hours. In order to test the claim, a consumer interest group tested a random sample of 40 batteries. The test resulted to a mean life expectancy of 87 hours. Using a 0.05 level of significance, can it be concluded that the life expectancy of their batteries is less than 90 hours? Assume that the population standard deviation is known to be 10 hours.

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.