A national organization has been working with utilities throughout the nation to find sites for large wind machines that generate electricity. Wind speeds must average more than 10 miles per hour (mph) for a site to be acceptable. Recently, the organization conducted wind speed tests at a particular site. To determine whether the site meets the organization's requirements, consider the test,
where
μ is the true mean wind speed at the site and
Suppose the observed significance level (
p-value) of the test is calculated to be
Interpret this result.
◦ Since the
p-value exceeds
α = .01, there is insufficient evidence to reject the null hypothesis.
◦ Since the
p-value greatly exceeds
α = .01, there is strong evidence to reject the null hypothesis.
◦ The probability of rejecting the null hypothesis is 0.2991.
◦ We are 70.09% confident that
μ = 10.
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