Question

Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstore costs $ 51.04. You want to test this claim. The null and alternative hypothesis in symbols would be: H 0 : μ ≥ 51.04 H 1 : μ < 51.04 H 0 : μ = 51.04 H 1 : μ ≠ 51.04 H 0 : p ≤ 51.04 H 1 : p > 51.04 H 0 : μ ≤ 51.04 H 1 : μ > 51.04 H 0 : p = 51.04 H 1 : p ≠ 51.04 H 0 : p ≥ 51.04 H 1 : p < 51.04 The null hypothesis in words would be: The average price of textbooks in a sample is $ 51.04 The average price of all textbooks from the store is $ 51.04 The average of price of all textbooks from the store is greater than $ 51.04. The proportion of all textbooks from the store that are less than 51.04 is equal to 50% The average of price of all textbooks from the store is less than $ 51.04. Based on a sample of 70 textbooks at the store, you find an average of 61.64 and a standard deviation of 25.4. The point estimate is: (to 3 decimals) The 90 % 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

Part 1)

The null and alternative hypothesis in symbols

Since the claim is that average textbook at BC bookstore costs $51.04 and there is no mention of less than or greater than, our hypotheses would be

Ho : μ = 51.04

Ha: μ ≠ 51.04

Option B is the correct answer

Part 2)

The null hypothesis in words would be "The average price of all textbooks from the store is $ 51.04"

Option B is the correct answer

Part 3)

The point estimate is the sample mean = 61.64

part 4)

For 90% Confidence interval, Z^* = 1.645

The confidence interval is given by

part 5)

Since the confidence interval does not contain 51.04, we reject the null hypothesis