Hypothesis Test for mean:
Assuming you have a large enough sample such that the central limit theorem holds, or you have a sample of any size from a normal population with known population standard deviation, then to test the null hypothesis
H0: μ ≤ Δ or
H0: μ ≥ Δ or
H0: μ = Δ
Find the test statistic z = (xbar - Δ ) / (sx / √ (n))
where xbar is the sample average
sx is the sample standard deviation, if you know the population standard deviation, σ , then replace sx with σ in the equation for the test statistic.
n is the sample size
The p-value of the test is the area under the normal curve that is in agreement with the alternate hypothesis.
H1: μ > Δ; p-value is the area to the right of z
H1: μ < Δ; p-value is the area to the left of z
H1: μ ≠ Δ; p-value is the area in the tails greater than |z|
If the p-value is less than or equal to the significance level α, i.e., p-value ≤ α, then we reject the null hypothesis and conclude the alternate hypothesis is true.
If the p-value is greater than the significance level, i.e., p-value > α, then we fail to reject the null hypothesis and conclude that the null is plausible. Note that we can conclude the alternate is true, but we cannot conclude the null is true, only that it is plausible.
The hypothesis test in this question is:
H0: μ ≤ 195 vs. H1: μ > 195
The test statistic is:
z = ( 200 - 195 ) / ( 13 / √ ( 30 ))
z = 2.106625
The p-value = P( Z > z )
= P( Z > 2.106625 )
= 0.01757504
Since the p-value is less than the significance level we reject the null hypothesis and conclude the alternate hypothesis μ > 195 is true.
now, using the fixed level idea for hypothesis testing we would reject the null hypothesis if the test statistic is greater than 1.96
the value of xbar for rejection is xbar > 195 + 1.96 * 13/sqrt(30) = 199.652
since the mean of the sample is 200 we can reject the null.
in the case of a 1% level test we would fail to reject. We can find this be looking for the new critical region or note that the p-value is greater than 1% and thus we cannot reject the null hypothesis at the 1% level.