To test if 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 ________. A) reject the null hypothesis and conclude that the mean IQ is greater than 100 B) reject the null hypothesis and conclude that the mean IQ is not greater than 100 C) do not reject the null hypothesis and conclude that the mean IQ is greater than 100 D) do not reject the null hypothesis and conclude that the mean IQ is not greater than 100

Question

Quizplus · Accepted Answer

The null hypothesis H0 states that the mean IQ of employees in the organization is equal to 100. The alternative hypothesis Ha states that the mean IQ is greater than 100. 
At a 5% significance level, the critical value of the t-distribution with 29 degrees of freedom (sample size -1) is 1.699. Since the computed t-statistic of 2.42 is greater than the critical value, we reject the null hypothesis. Therefore, we conclude that the mean IQ of employees in the organization is greater than 100.

To Test If the Mean IQ of Employees in an Organization