Question

A manager wants to know whether customers in Taiwan, on average, would spend more than $2,000 per month on the service that is similar to what her company provides. The following information regarding the consumer behavior of 49 customers was provided by the marketing research team: sample mean = $2,400 and sample standard deviation = $1,800. Using the sample information provided and 0.05 significance level, determine the critical value and calculate the value of the test statistic.

Select one:

a. Critical values = –1.96 & +1.96, and Test statistic = –1.56

b. Critical value = 1.96, and Test statistic = 1.56

c. Critical value = –1.645, and Test statistic = –1.56

d. Critical value = 1.645, and Test statistic = 1.56

Answer 1

Solution :

= 2000

n = 49

this is the right tailed test .  

The null and alternative hypothesis is ,

H0 :   = 2000

Ha : > 2000

Test statistic = s

= ( - ) / s / n

= (2400-2000) / 1800/ 49

= 1.56

Degrees of freedom = df = n - 1 = 49- 1 = 48

= 0.05

Critical value = 1.645

d. Critical value = 1.645, and Test statistic = 1.56