1. Describe in full sentences the hypothesis testing steps & provide an example to solve by using hypothesis testing. 





3(a)
(b)
(c)
The random variable is the sampling distribution of sample mean cost of a Starbucks Grande Caffe Latte for sample size n=10.
(d)
Test is two tailed.
(e)
Since population standard deviation is known so standard normal distribution will be used.
(f)
Given information:
The test statistics is
(g)
The pvalue is
pvalue =2P(z < 1.92) = 0.0548
(h)
(i)
(ii)
Since pvalue is greater than so we fail to reject the null hypothesis.
(iii)
The pvalue is greater than .
(iv)
Conclusion: There is evidence to conlcude that the mean cost of a Starbucks Grande Caffe Latte is $3.65.
Get Answers For Free
Most questions answered within 1 hours.