Question

a) Are folks droppin' the cash gambling like thuy used to? Five years d1o, the average amount a family visiting Las Vegas spent on non-gambling entertainment was $750. The claim from the LV Gaming Association is that this mean has gone up i) What is the mean we want to test? ii) Write down the NulI and Alternate Hypotheses. iii) A random sample of n = 100 (non-gambling) amounts had mean i = $ 800 and st dev s = $ 125. Find the Rejection Region .if q = .05, compute the Test Stat and conduct your test. v) What is the conclusion of your test? v) Find the P-value and indicate this value is consistent with your conclusion.

Answer 1

Solution :

= 750

=800

S =125

n = 100

This is the two tailed test .

The null and alternative hypothesis is ,

H₀ :    = 750

H_a :     750

Test statistic = t

= ( - ) / S / n

= (800-750) / 125 / 100

= 4.00

Test statistic = t =  4.00

P-value =0.0001

= 0.05  

P-value <

0.0001 < 0.05

Reject the null hypothesis .

There is sufficient evidence to suggest that