Question

Dr. Mack Lemore, an expert in consumer behavior, wants to estimate the average amount of money that people spend in thrift shops. He takes a small sample of 8 individuals and asks them to report how much money they had in their pockets the last time they went shopping at a thrift store. Here is the data:

16.55, 16.65, 18.45, 19.37,   19.81,   16.11, 26,   25.5.

He wishes to test the null hypothesis that the average amount of money people have in their pockets is equal to $20. Calculate the test statistic to two decimal places. Take all calculations toward the answer to three decimal places.

Answer 1

We have for given sample,                  
Population mean for given sample=20  
Sample mean=19.805          
Sample standard deviation= s=   3.91      
Sample size =n=   8

t test statistic formula is                  

  
=-0.14