. The average family size in the Philippines was reported as 4.25. A random of families in a particular street resulted in the following family sizes: 5, 6, 7, 4, 3, 2, and 9. At 𝛼=0.10, does the average family size more than the national average?
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The hypotheses are,
The test statistic is,
The critical value is,
The null hypothesis is rejected if,
Since , the null hypothesis is not rejected. Therefore, we can conclude that there is no sufficient evidence to show that the average family size is more than the national average at 1% level of significance.