Answer¶
We will solve the problem using \(p-value\) as well as critical regions. Let \(\bar{X}\) denote the mean of the samples. First, lets find the critical region to reject \(H_{0}\).
\[
\begin{aligned}
P(\lvert \bar{X} \rvert > c \lvert H_{0} \quad\text{is true}) &= \alpha = 0.05\newline
P \bigg(\bigg\lvert \frac{\bar{X} - 30}{20/\sqrt{10}} \bigg\rvert > c \bigg) &= 0.05
\end{aligned}
\]
Since this is a double sided test, \(c = z_{0.05/2} = z_{0.025} = 1.96\). We reject the hypothesis if either the test statistic \(> 1.96\) or \(< -1.96\). The test statistic in this case is \((27-30) \sqrt{10} / 20 = -2.12\) rejecting \(H_{0}\).
For solution using p-value, we calculate the following
\[
\begin{aligned}
P \bigg(Z > \bigg\lvert \frac{\bar{X} - 30}{20/\sqrt{10}} \bigg\rvert \bigg) &= P(Z > 2.12 \cup Z < -2.12)\newline
&= 2P(Z > 2.12) = 2(1-\Phi(2.12)) = 2(1-0.98300)\newline
&= 0.034 < 0.05
\end{aligned}
\]
Since the p-value is smaller than the significance level, we accept \(H_{a}\) which states that the mean is different than \(30\).