Chapter 10.2, Problem 25P

(i)

To determine

The level of significance, null hypothesis and alternate hypothesis.

(ii)

To determine

To find: The sampling distribution that should be used along with assumptions and compute the value of the sample test statistic.

(iii)

To determine

To find: The critical value of the test statistic and sketch the sampling distribution showing the critical region.

(iv)

To determine

Whether we reject or fail to reject the null hypothesis and whether the data is statistically significant for a level of significance of 0.01.

(v)

To determine

The interpretation for the conclusion.

(vi)

To determine

The comparison for our conclusion with the conclusion obtained from the P-value method.