The accompanying data table lists measured voltage amounts supplied directly to a family's home. The power supply company states that it has a target power supply of 120 volts. Using those home voltage amounts, test the claim that the mean is 120 volts. Use a 0.01 significance level.
From the calculator, The sample size is n = 40 The sample mean is xavg = 123.73 The sample std. deviation is s = 0.27
The expected population average is μ = 120
Calculate the test statistic. z = (xavg - μ)/(s/√n) . = (123.73 - 120)/(0.27/√40) = 87.36
The null hypothesis is H₀: xavg = μ and the alternate hypothesis is xavg > μ
At α=0.01 level of significance, the one-tailed test has a rejection region of α/2 = 0.005. From standard tables, the test statistic clearly falls in the rejection region. We should reject the null hypothesis and conclude that xavg > μ.
Answer: The claim that the mean voltage is 120 V is false at the 0.01 significance level.