Hypothesis testing

The owner of a local nightclub would like to determine if the mean age of her customers is less than 30. If so, she plans to alter the entertainment to appeal to a younger crowd. If not, no entertainment changes will be made. She has recently surveyed a random sample of n = 250 customers of the club. Sample mean = 29.55 and = 5.

The appropriate hypotheses to test are:

H0: 30 and H1: < 30H0: 30 and H1: > 30H0: X 30 and H1: X < 30H0: X 30 and H1: X > 30

a)What decision rule should she use at 1% level of significance?

b)What is the calculated test statistic?

c)What decision should she make?

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