Question

Test, at the 1% level of significance, whether the average business has more than 15 employees.

Answer using excel.

Employees |

14 |

17 |

17 |

6 |

8 |

17 |

21 |

16 |

6 |

17 |

11 |

17 |

15 |

16 |

20 |

19 |

6 |

12 |

17 |

22 |

20 |

17 |

11 |

11 |

9 |

22 |

17 |

18 |

21 |

20 |

26 |

7 |

16 |

19 |

18 |

11 |

21 |

17 |

25 |

16 |

22 |

14 |

14 |

16 |

18 |

20 |

21 |

11 |

19 |

13 |

6 |

11 |

19 |

14 |

18 |

31 |

13 |

15 |

17 |

21 |

10 |

20 |

21 |

16 |

14 |

20 |

8 |

26 |

10 |

15 |

Answer #1

For given sample averager value is and standard deviation is

Now here claim is that the average business has more than 15 employees.

So hypothesis here is vs

Sample size is n=70>30

So we will use z statistics

So P value is

As P value is greater than alpha, we fail to reject the null hypothesis

Hence there is no sufficient evidence to support the claim that mean is greater than 15

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