i) H0: mu=12.5 Ha: mu>12.5 ii) a) Assume H0 true and since the sample is small you need to compute a t value. However, since n is small, you must also assume that y is normally distributed. First, compute s(ybar) and then t. s(ybar)=6/sqrt(9)=2 t=(14-12.5)/s(ybar) =1.5/2 =0.75 b) Since you have 9 df the area under the curve to the right of t is between 10% and 25% hence the p-value is between 10% and 25% or, expressed as a probability, between 0.1 and 0.25. c) Non significant. Insufficient evidence to reject H0. iii)a) You need to compute a z value since the sample is large. First recompute s(ybar). s(ybar)=6/sqrt(100)=0.6 z=(14-12.5)/0.6=2.5 b) The area under the curve is (100-98.76)/2=0.62% hence the p-value is 0.62% or, expressed as a probability, 0.0062. c) Highly significant. d) The CIO should reject H0 and conclude that the application development manager is optimistic.