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1. Suppose we would like to test the hypothesis that mean cholesterol levels of residents of Kalamazoo and Ann Arbor, Michigan, are the same. We know that both populations have the same variance. State the appropriate hypothesis set (null and alternative). What test statistic should be used?

2. Consider a sample of size 5 from a normal population with a variance of 5 and a mean of zero under the null hypothesis. Find the critical values for a 0.05 two-sided significance test of the mean equals zero versus the mean dif- fers from zero.

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