A Test Is Made Of $H _ { 0 } : \mu = 60 \text { versus } H _ { 1 } : \mu \neq 60$

question 71

Multiple Choice

A test is made of $H _ { 0 } : \mu = 60 \text { versus } H _ { 1 } : \mu \neq 60$ $\bar { x } = 66$ The population standard deviation is $\sigma = 22$ Compute the value of the test statistic z and determine if $H _ { 0 }$ is rejected at the $\alpha = 0.01 \text { level. }$

• A) \(0.27 , H _ { 0 } \text { rejected }\)
• B) \(2.38 , H _ { 0 } \text { rejected }\)
• C) \(0.27 , H _ { 0 } \text { not rejected }\)
• D) \(2.38 , H _ { 0 } \text { not rejected }\)

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Definitions:

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The ability of a country, individual, or firm to produce more of a good or service than competitors using the same amount of resources.

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The cost of forgone alternatives when a decision is made to choose one option over others.