Question

CNN/Money reports that the mean cost of a speeding ticket, including court fees, was $150.00 in 2002. A local police department claims that this amount has increased. To test their claim, they collected data from a simple random sample of 160 drivers were fined for speeding in the year 2002 and found that they paid a mean of $154.00 per ticket. Assuming that the population standard deviation is $17.54, is there sufficient evidence to support the police department’s claim at the 0.01 level of significance?

Hypotheses:

Test Statistic and value:                                                                     P-value:

Conclusion:

Answer 1

as p value is less then 0.01 level we reject null hypothesis and conclude that there is sufficient evidence to support the police department’s claim