The evidence suggests that the current class performed statistically better than previous classes on the final exam at a significance level of 0.05.
Let's conduct hypothesis testing to determine if the current class performed statistically better than the previous classes on the final exam. We'll use an appropriate statistical test (in this case, a one-sample t-test) and follow the 8 steps of hypothesis testing:
8 Steps of Hypothesis Testing:
State the Hypotheses
Null Hypothesis (H0): The current class did not perform better than previous classes. μ = 78
Alternative Hypothesis (H1): The current class performed better than previous classes. μ > 78
Choose the Significance Level
The significance level (α) is given as 0.05.
Select the Test Statistic
Since the population variance is unknown and the sample size is relatively small (n = 25), we'll use a t-test for a single sample.
Formulate the Decision Rule
With a significance level of 0.05 and a one-tailed test (since we're checking if the mean is greater), we'll find the critical t-value using a t-table or a statistical software.
Compute the Test Statistic
The formula for the t-test for a single sample is:
t=

Where:
x is the sample mean (86)
μ is the population mean (78)
s is the sample standard deviation (10)
n is the sample size (25)
Make a Decision
Calculate the t-statistic and compare it to the critical t-value obtained in
Make a Decision
If the calculated t-value falls into the rejection region (greater than the critical t-value), we reject the null hypothesis.
Conclusion
Let's calculate the t-statistic and make a decision:
t= 86−78/ 10/25
t= 8/2 =4
Using a t-table or statistical software with 24 degrees of freedom (n - 1), the critical t-value at α = 0.05 (one-tailed test) is approximately 1.711.
Since the calculated t-value (4) is greater than the critical t-value (1.711), we reject the null hypothesis.
Conclusion:
The evidence suggests that the current class performed statistically better than previous classes on the final exam at a significance level of 0.05.