Suppose we are interested in mean decay rate of a compound in the Mill River. Determine the mean decay rate is greater than 3.0 per day. When you test a random sample of size 15, the sample mean decay rate is 3.15. If an assumed known standard deviation of sample is 0.20 per day.
1. What are the appropriate hypotheses?
2. What is the rejection region for 1%?
3. Test hypothesis with the significance level of 1% and explain your conclusion.
4. What is p-value? Compare the conclusion using the same significant level of 1% with previous hypothesis testing.
5. Find a 99% confidence interval for the mean decay rate and compare the conclusion with previous hypothesis testing and p-value.