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1. In the previous exercise there were two possible outcomes; reject the null hy- pothesis or fail to reject the null hypothesis. Explain in your own words what is meant by these outcomes.

2. Test the hypothesis that a normally distributed population has a mean blood glucose level of 100 (u 2 = 100). Suppose we select a random sample of 30 in- dividuals from this population (X- = 98.1, S2 = 126).

a. What is the hypothesis set (null and alternative) for a two-tailed test?

b. Find the estimated s.e.m.

c. Find the Z statistic.

d. What decision should we make, i.e., reject or fail to reject H0 at the CY = 0.05 level; reject or fail to reject H0 at the CY = 0.01 level?

e. What type of test is preferable to run in this situation, exact or approxi- mate? Explain your answer.

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