Consolidated Power has just built a modern nuclear power plant. The plant discharges waste water that is allowed to flow into the Atlantic Ocean. The EPA has ordered that the waste water temperature must not exceed 60 degrees Fahrenheit so that thermal pollution of the marine environment near the plant can be avoided. The plant takes 100 samples of the water temperature every day. If it exceeds 60 degrees the plant must be shut down. Today Solution This is a 1-sided test. The standard deviation is 2 degrees. There are 100 observations. Therefore, the standard deviation of the sample mean is 2/sqrt(100) = .2 The null hypothesis is Ho: the water temperature <= 60 degrees The alternate hypothesis is Ha: the water temperature > 60 degrees. The critical value z alpha for the 1-sided test is normsinv(1 - .01) = 2.32634787404084 The decision rule is to reject the null hypothesis if z >2.32634787404084 The calculated z statistic is (60.482-60)/.2 = 2.41 AS 2.41 >2.32634787404084, the critical value, we reject the null hypothesis that the water temperature is less than or equal to 60 degrees. Therefore, we are forced to shut the plant down. The p-value is1 - normsdist(2.41) = 0.00797626026073384 .