
Robert Z. answered 07/26/20
3965+ hours (& counting!) tutoring math -- Prealgebra to Calculus 2
There is a mistake in the way this problem is written. σ is the symbol for standard deviation, not variance. If the variance is in fact 20, σ is √20 ≈ 4.47
H0: μ = 30
Ha: μ ≠ 30
Since the population variance is known, it is appropriate to use the normal distribution to test the hypothesis. We build a "do not reject" region as 30 ± 1.96 (4.47/√10) = 30 ± 2.77.
The sample mean of 27 falls outside the "do not reject" interval (27.23, 32.77), so we jejhect the null hypothesis and conclude that the mean is not 30, at the 5% significance level.