Based on the p-value method, we can conclude that the average farm size in Oregon is statistically different from the national mean.
The Breakdown
Conducting a hypothesis test using the p-value method, to determine whether the average farm size in Oregon differs from the national mean
The null and alternative hypotheses:
Null Hypothesis (H0): The average farm size in Oregon is equal to the national mean (µ = 444 acres).
Alternative Hypothesis (Ha): The average farm size in Oregon differs from the national mean (µ ≠ 444 acres).
The test statistic (z-score) can be calculated using the formula:
z = (x - µ) / (σ / √n)
Where:
x = sample mean (430 acres)
µ = population mean (444 acres)
σ = population standard deviation (52 acres)
n = sample size (40 farms)
Plugging in the values, we get:
z = (430 - 444) / (52 / √40)
z = -14 / (52 / √40)
z ≈ -2.13
Using a standard normal distribution table or a statistical software, we find that the p-value for a two-tailed test with a z-score of -2.13 is approximately 0.033.
Since the p-value (0.033) is less than the significance level (0.05), we reject the null hypothesis. This means that there is sufficient evidence to conclude that the average farm size in Oregon differs from the national mean.