Chapter 8.2, Problem 16P

(a)

To determine

Find the level of significance.

State the null and alternative hypothesis.

(b)

To determine

Identify the sampling distribution to be used.

Explain how the sampling distribution is chosen.

Find the sampling distribution value of the sample test statistic.

(c)

To determine

Find the P-value.

Draw the sampling distribution by showing the area corresponding to the P-value.

(d)

To determine

Check whether the null hypothesis is rejecting or fail to reject.

Identify whether the data statistically significant at level 0.01 or not.

(e)

To determine

Interpret the conclusion in the context of the application.