I'm studying stats in order to obtain a certificate and I'm struggling with this question. I've searched a lot and I really didn't understand how to procede in this question. I even don't know how to begin to solve this question. Can someone help me? The fact that average is unknown is confusing me too, I don't know how to start in this way.
Let X1, X2, ..., Xn be a random sample of the Normal distribution with unknown average $\mu$ and variance equals to 1. A statistical test is being conduced and it wants to text H0: $\mu$ = $\mu0$ versus H1: $\mu$ $\ne$ $\mu0$. Suppose n = 16 and the critical region is in the form of | $\bar X$ - $\mu0$| $\ge$ c. What is the value of c such that the size of the test is 0,01?
Sorry for my English :~