To test your friend's claim that he averages a 95% on his exams, we set up the hypotheses as follows:
Null Hypothesis (H0):
The null hypothesis states that your friend's average is equal to 95%. \[ H_0: \mu = 95 \]
Alternative Hypothesis (H1):
The alternative hypothesis states that your friend's average is not equal to 95%. \[ H_1: \mu \neq 95 \]
This is a two-tailed test since we are interested in deviations from 95% in either direction.
Conclusion Based on P-value:
You are conducting the hypothesis test at the 7% significance level (α = 0.07) and you obtained a p-value of 0.049.
Since the p-value (0.049) is less than the significance level (0.07), you reject the null hypothesis.
Therefore, the conclusion that should be drawn is: B. You conclude that your friend doesn't average a 95% on his exams.