The cost of a daily newspaper varies from city to city. However, the variation among prices remains steady with a standard deviation of 6¢. A study was done to test the claim that the average cost of a daily newspaper is 35¢. Fourteen costs yield an average cost of 30¢ with a standard deviation of 4¢. Do the data support the claim at the 1% level?
The cost of a daily newspaper varies from city to city. However, the variation among prices remains steady with a standard deviation of 6¢. A study was done to test the claim that the average cost of a daily newspaper is 35¢. Fourteen costs yield an average cost of 30¢ with a standard deviation of 4¢. Do the data support the claim at the 1% level?
Note: If you are using a Student's t-distribution for the problem, you may assume that the underlying population is
State the distribution to use for the test
What is the test statistic
What is the p-value?
Construct a 95% confidence interval for the true mean. Sketch the graph of the situation. Label the point estimate and the lower and upper bounds of the confidence interval. (Round your lower and upper bounds to two decimal places.)
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