Question

During the past several years, frequent checks were made of the spending patterns of holiday makers returning from vacations. It is claimed that holiday makers spent an average of N$ 1 010 on items such as meals, films, gifts, and so on. Recently, a new survey was conducted to determine whether there has been a change in the average amount spent. A sample of 50 holiday makers has a sample mean of N$ 1 090 and a standard deviation of N$ 300. At the 0.01 level, is there evidence to indicate that there has been a change in the mean amount spent by holiday makers?

4.1) Formulate the hypothesis (2)

4.2) Select and compute the suitable sample statistic (4)

4.3) Formulate the Decision Rule (2)

4.4) What is the decision? (1)

4.5) What is the conclusion? (1)

Answer 1