Question

For a certain group of individuals, the average cost of a trip to last year's Super Bowl was $875. The standard deviation was $50. This year, 49 fans who scheduled the trip paid an average of $890 for the trip. Test the claim that the average cost this year is greater than last year's cost. Use the p-value method with α = 0.01. Use Z.

1. Calculate the value of the test statistic. Enter your answer as a number rounded to two digits after the decimal point

2. What is the value of the p-value? Using the appropriate statistical table, enter this answer as a number rounded to four digits after the decimal point.

3. following is the proper conclusion to the hypothesis test?

Answer 1

Let be the population mean of the cost of last years Super bowl trip.

To test

vs

1)

Test statistic

2)

P-value is given by

3)

At 1% LOS we accept the null hypothesis as the p-value is greater than 0.01 which implies that we do not have enough evidence to claim that the average price of the trip has increased.

Thank you !!