The question states:
We take a sample and find a $95\%$ confidence interval for the mean of $(24.2, 28.4)$. If we are testing $H_0 : \mu = 24$ against $H_1 : \mu > 24$ at the $5\%$ level of significance
What is our conclusion?
(A) Reject $H_0$,
(B) Fail to reject $H_0$,
(C) Can’t tell
I can't really solve this... I've got:
$x_{bar} + \text{Error} = 28.4$
$x_{bar} - \text{Error}= 24.2$
$x_{bar} = 26.3$, so $\text{Error}= 2.1$
$Z_{\alpha/2} = 1.96$
So $\sigma/n^{1/2} = 1.2766$
But I dont know how to move from there...
Thank you, hope you can help.
Based on the confidence interval, reject $H_0$ because $24 \notin (24.2, 28.4)$ i.e the C.I. provides evidence against the null in favour of the alternative.