Answer
We fail to reject the Null hypothesis.
Work Step by Step
Here we have α = 0.01 and n = 8. df = 8 - 1 = 7
Using the classical approach, we have:
$t = \frac{\bar d - µ_{d}}{s_{d}/\sqrt n}$
$ = \frac{-1.075 - 0}{3.833/\sqrt 8} = \frac{-1.075}{1.355} = -0.793$
Using Student's t distribution table, we have:
t = 3.499
Hence, the rejection region will be all values smaller than -3.499 and greater than 3.499.
Since -3.499 < -0.793 < 3.499, we fail to reject the Null Hypothesis.
