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Hypothesis Testing.
1. Annual per capita consumption of milk is 21.6 gallons (Statistical Abstract of the United States: 2010). A sample of 18 individuals from the Midwestern town of Webster City showed a sample mean annual consumption of 23.5 gallons with a sample standard deviation s = 4.5. Develop a hypothesis test that can be used to determine whether the mean annual consumption in Webster City is higher than the national mean. α = 0.05.
a) The hypotheses, using correct notation:
b) The rejection rule, citing the critical value of the test statistic.
c) Show the calculation of the test statistic.
d) The rejection decision and why.
e) In a complete sentence, give your conclusion about the issue in question.
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