Option 2: Describe an application where you can use hypothesis testing to test a premise. Use 0.05 for your alpha and summarize the scenario. Set up the problem, solve it and state your conclusions.See the example below.

EXAMPLE: XYZ car company boasts that its new car "Zippy" gets at least 59 miles to the gallon. Given a sample mean of 57 and a standard deviation of 3.5 where 35 people were tested, find the z-value and p-score. Hint: Use the p-value calculator in the announcements to find the p-score.

ANSWER:

Ho: u>=59

Ha: u<59

You can put this in Excel or your calculator: = (59-57)/(3.5/35^0.5) = 3.38

Or put this into an Excel cell: =norm.dist(59,57,3.5/35^0.5,true)

Then ENTER.

Next, take that value, which we will call A, and type this into an Excel cell: =norm.s.inv(A)

Then ENTER.

Using the "z to p value calculator" (https://www.socscistatistics.com/pvalues/normaldistribution.aspx) with a=0.05, 1-tailed test and z = 3.38. You should get: p = 0.000362

Since p < 0.05, we'd reject the null hypothesis.