Hypothesis testing-microwave oven repairer

Reference no: EM13110488

A microwave oven repairer says that the mean repair cost for damaged microwave oven is less than $90. You work for the repairer and want to test this claim. You find that a random sample of five microwave ovens has a mean repair cost of $87 and a standard deviation of $12.50. At a=0.01, do you have enough evidence to support the repairers claim? Assume the population is normally distributed.

a) Find critical value and identify the rejection region?
To =

b) Find the standardized test statistic?
T =

c) Decide whether to reject or fail the null hypothesis?

Reference no: EM13110488

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