An actuary wants to prove that the unofficial drinking age is younger than 21. it is assumed the age is normally distributed with a known population standard deviation of 5. let there be a sample of 25 millennials with an average drinking age of 17. the significance level should be strong because the actuary wants to use this test to show that 21 is not necessarily the most dangerous year to drive.
1. describe the null and alternative hypotheses.
2. choose a significance level that makes sense to you and conduct the test statistic.
3. interpret your results.