Question

Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstore costs $$ 72.36. You want to test this claim.

The null and alternative hypothesis in symbols would be:

• H0:p≥72.36H0:p≥72.36
  H1:p<72.36H1:p<72.36
• H0:μ≥72.36H0:μ≥72.36
  H1:μ<72.36H1:μ<72.36
• H0:p≤72.36H0:p≤72.36
  H1:p>72.36H1:p>72.36
• H0:p=72.36H0:p=72.36
  H1:p≠72.36H1:p≠72.36
• H0:μ≤72.36H0:μ≤72.36
  H1:μ>72.36H1:μ>72.36
• H0:μ=72.36H0:μ=72.36
  H1:μ≠72.36H1:μ≠72.36

The null hypothesis in words would be:

• The average of price of all textbooks from the store is less than $$ 72.36.
• The average price of all textbooks from the store is $$ 72.36
• The average of price of all textbooks from the store is greater than $$ 72.36.
• The average price of textbooks in a sample is $$ 72.36
• The proportion of all textbooks from the store that are less than 72.36 is equal to 50%

Based on a sample of 80 textbooks at the store, you find an average of 68.76 and a standard deviation of 25.4.

The point estimate is:  (to 3 decimals)

The 95 % confidence interval (use z*) is:  to  (to 3 decimals)

Based on this we:

• Reject the null hypothesis
• Fail to reject the null hypothesis

Answer 1

The statistical software output for this problem is:

From above output:

Hypotheses:

H0:μ=72.36
H1:μ≠72.36

Null: The average price of all textbooks from the store is $ 72.36

Point estimate = 68.760

95% confidence interval: (63.194, 74.326)

Fail to reject the null hypothesis