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The empirical rule says that approximately 68% of any normal distributed data set lies within one standard deviation of the mean.
The same rule states that about 95% lies within two standard deviations of the mean. Using this rule, and the fact that any normal distribution is symmetric about its mean, you have
Answer:
Our decision rule will be to reject The null hypothesis H0 if the test statistic is less than -1.645, or if it is greater than +1.645.
Step-by-step explanation:
The hypotheses would be;
Null hypothesis;H0: μ = 500
Alternative hypothesis;Ha: μ ≠ 500
Since it's two - tailed at 0.1 level of significance, then each tail will contain 5% or 0.05. From the z-table attached, the corresponding critical value of 0.05 is approximately 1.645 standard deviations from the mean.
Thus, our decision rule will be to reject The null hypothesis H0 if the test statistic is less than -1.645, or if it is greater than +1.645.
