Tests of μ, Standard Deviation Known (1 of 4)
 
    
  
   
  
  
  
    
  
  
  This section explains how to compute a  significance 
  test for the mean of a  normally-distributed 
  variable for which the  population  
    standard deviation (σ) is known. In practice, 
  the standard deviation is rarely known. However, learning how to compute
  a significance test when the standard deviation is known is an excellent
  introduction to how to compute a significance test in the more realistic
    situation in which the standard deviation has to be estimated. 
  - The  first
    step in 
    hypothesis  testing is to specify the null
    hypothesis  and the alternate hypothesis. In testing hypotheses about µ,
    the  null hypothesis is a hypothesized value of µ. Suppose the mean
    score  of all 10-year old children on an anxiety scale were 7. If a researcher
    were interested in whether 10-year old children with alcoholic parents
    had a different mean score on the anxiety scale, then the null and alternative
    hypotheses would be:
 
 H0: µalcoholic = 7
 
 H1: µalcoholic ≠ 7
 
 
- The  second step is to choose a  significance
      level. Assume
    the 0.05 level is chosen. 
 
 
- The  third step is to compute the  mean. Assume
    M = 8.1.
