Question

The mean annual income of certified welders is normally distributed with a mean of $50,000 and a population standard deviation of $2,000. The ship building association wishes to find out whether their welders earn more or less than $50,000 annually. The alternate hypothesis is that the mean is not $50,000. If the level of significance is 0.10, what is the decision rule

Answer 1

Using the p-value method, the decision rule is:

• |z| < 1.645: do not reject the null hypothesis.

• |z| > 1.645: reject the null hypothesis.

What is the relation between the p-value and the test hypothesis?

Depends on if the p-value is less or more than the significance level:

• If it is more, the null hypothesis is not rejected.

• If it is less, it is rejected.

In this problem, we have a two-tailed test, as we are testing if the mean is different of a value. For a significance level of 0.1, the critical value of z(when a p-value of 0.1 is obtained) is of |z| = 1.645, hence the decision rule is:

• |z| < 1.645: do not reject the null hypothesis.

• |z| > 1.645: reject the null hypothesis.

More can be learned about p-values at brainly.com/question/13873630

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