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?
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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Question
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
x̅=0.95
σ=0.2
Step 2
Test statistic can be obtained as:
Thus, test statistic is |Z| =0.8660.
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