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Answer:
Our decision rule will be to reject The null hypothesis H0 if the test statistic is less than -1.645, or if it is greater than +1.645.
Step-by-step explanation:
The hypotheses would be;
Null hypothesis;H0: μ = 500
Alternative hypothesis;Ha: μ ≠ 500
Since it's two - tailed at 0.1 level of significance, then each tail will contain 5% or 0.05. From the z-table attached, the corresponding critical value of 0.05 is approximately 1.645 standard deviations from the mean.
Thus, our decision rule will be to reject The null hypothesis H0 if the test statistic is less than -1.645, or if it is greater than +1.645.
