Final answer:
To conduct the hypothesis test, we calculate the standardized test statistic, find the rejection region, determine the p-value, and make a decision based on the test statistic and p-value. In this case, we reject the null hypothesis.
Step-by-step explanation:
To determine the value of the standardized test statistic, we use the formula:
z = (x - mu) / (sigma / sqrt(n))
Substituting the given values, we get:
z = (1030 - 980) / (250 / sqrt(90)) = 2.52
The rejection region for the standardized test statistic depends on the chosen significance level. For a = 0.05, the rejection region is z > 1.645.
The p-value is the probability of observing a test statistic as extreme as the one obtained, assuming the null hypothesis is true. To find the p-value, we can use the z-table or calculator and find the area to the right of the test statistic. For z = 2.52, the area to the right is approximately 0.0059.
Based on the calculated test statistic and the rejection region, we compare the test statistic to the critical value and the p-value to the chosen significance level. In this case, the test statistic (2.52) is greater than the critical value (1.645) and the p-value (0.0059) is less than the significance level (0.05). Therefore, we reject the null hypothesis (H_0) in favor of the alternative hypothesis (H_1). So the correct answer is D. Reject H_1.