.Hypothesis Testing for 26

Null Hypothesis (H0): The mean price customers are willing to pay is less than or equal to 26.

Alternative Hypothesis (Ha): The mean price customers are willing to pay is greater than 26

Where: Standard deviation = 2.56

Test value = 26

Sample size = 50

Population mean = 27.14

The Alpha value 95% = 0.95 (1-0.95 = 0.05). There is a 5% chance that we will reject the hypothesis.

\fZ= 27.14-30 -2.86 -2.86 -7.92 2.56/sqrt50 2.56/7.071 0.362\f