The correct answer is Option C. The proper decision, in this case, is "Fail to reject H0. There is not enough evidence at the 1% level of significance to reject the claim."
The alternative hypothesis, in this case, is "μ1 ≠ μ2", as the claim being tested is that the two population means are equal.
To calculate the standardized test statistic, we can use the following formula:
Substituting in the values given in the problem, we get:
z = (18 - 20) / sqrt(((3.6^2) / 27) + ((1.4^2) / 26))
z = (-2) / sqrt((12.96 / 27) + (1.96 / 26))
z = (-2) / sqrt(0.481 + 0.075)
z = (-2) / sqrt(0.556)
z = (-2) / 0.746
z = -2.67
To calculate the P-value, we can use the standard normal table to look up the probability of getting a value of -2.67 or lower if the null hypothesis were true. The P-value in this case would be the probability of getting a value equal to -2.67 or lower, plus the probability of getting a value equal to 2.67 or higher.
Using the standard normal table, we find that the probability of getting a value equal to -2.67 or lower is 0.0039, and the probability of getting a value equal to 2.67 or higher is 0.9961. Therefore, the P-value is 0.0039 + 0.9961 = 1.0000.
Since the P-value is equal to 1.0000, which is greater than the level of significance α = 0.01, we fail to reject the null hypothesis.
Learn more about alternative hypothesis here:
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