What is the value of the test statistic?   b.     What is the p-value?   c.     Circle/highlight the correct decision about the null hypothesis. Reject H0                                                          Fail to Reject H0   d.     What are your conclusions?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.3: Measures Of Spread
Problem 26PFA
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1.     The cost of a daily newspaper varies from city to city. The variation remains steady with a standard deviation of .20 cents. A study is conducted to test the claim that the average costs is $1.00. In a random sample of 12 cities the mean cost is .95 cents with a standard deviation of .18 cents. Using a 99% level of confidence, does the data support the claim that the average cost is $1.00?

a.     What is the value of the test statistic?

 

b.     What is the p-value?

 

c.     Circle/highlight the correct decision about the null hypothesis.

Reject H0                                                          Fail to Reject H0

 

d.     What are your conclusions?

Expert Solution
Step 1

From provided information, it is claimed that average cost for newspaper is $1.

Hypothesis can be constructed as:

H0: µ=1

H1: µ≠1

Data is,

n=12

=0.95

σ=0.2

Step 2

Test statistic can be obtained as:

Z=X-μσ/n=0.95-10.2/12=-0.8660

Thus, test statistic is |Z| =0.8660.

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