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Test of mean
Variance known (two-sided)
Hypothesis:
H 0 :   0
H1 :    0
Test statistics:
x  0
z
/ n
Significance level:


X  0
P  za / 2 
 za / 2   1  a
/ n


Critical values:
 za / 2 , za / 2
Decision: reject H0 if z does not lie between the
critical values, otherwise we cannot reject H0.
6
lecture 8
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