In order to test the mean IQ of employees in an organization is greater than 100

Question

In order to test the mean IQ of employees in an organization is greater than 100, a sample of 30 employees is taken and the value of the test statistic is computed as t29 = 2.42. If we choose a 5% significance level, we _______.

Reject the null hypothesis and conclude that the mean IQ is greater than 100.

Reject the null hypothesis and conclude that the mean IQ is not greater than 100.

Do not reject the null hypothesis and conclude that the mean IQ is greater than 100.

Do not reject the null hypothesis and conclude that the mean IQ is not greater than 100.

Explanation / Answer

Set Up Hypothesis
Null, H0: U=100
Alternate,IQ of employees in an organization is greater than 100 H1: U>100
We got |to| =2.42 & | t | =1.699
Make Decision
Hence Value of | to | > | t | and Here we Reject Ho
Reject the null hypothesis and conclude that the mean IQ is greater than 100

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