A refrigeration unit at a restaurant is supposed to be kept at 40 times degree F An inspector would like to test the hypotheses ratio of cap h sub 0 to mu is equal to 40 versus ratio of cap h sub A to mu is not equal to 40 where μ= the true mean temperature for all times of the day. A 98 percent confidence interval based upon a random sample of 40 temperatures is 40 point 5 degrees to 42 point 1 degrees. Using the interval, what decision should be made?
Answer
A
The null hypothesis should be rejected at the alpha is equal to 0 point 0 2 level.
B
The null hypothesis should be rejected at the alpha is equal to 0 point 0 1 level.
C
The null hypothesis should not be rejected at the alpha is equal to 0 point 1 0 level.
D
The null hypothesis should not be rejected at the alpha is equal to 0 point 0 5 level.
Explanation
A 98% confidence interval corresponds to a two-sided test at α = 0.02. The interval from 40.5°F to 42.1°F does not include the hypothesized mean of 40°F, so the null hypothesis should be rejected at the 0.02 level. The interval does not establish that the null should also be rejected at α = 0.01.
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