Question

Suppose that BC financial aid allots a textbook stipend by claiming that the average textbook at BC bookstore costs $$ 73.79. You want to test this claim.

The null and alternative hypothesis in symbols would be:

• H0:p≥73.79H0:p≥73.79
  H1:p<73.79H1:p<73.79
• H0:μ≤73.79H0:μ≤73.79
  H1:μ>73.79H1:μ>73.79
• H0:p=73.79H0:p=73.79
  H1:p≠73.79H1:p≠73.79
• H0:μ=73.79H0:μ=73.79
  H1:μ≠73.79H1:μ≠73.79
• H0:μ≥73.79H0:μ≥73.79
  H1:μ<73.79H1:μ<73.79
• H0:p≤73.79H0:p≤73.79
  H1:p>73.79H1:p>73.79

The null hypothesis in words would be:

• The proportion of all textbooks from the store that are less than 73.79 is equal to 50%
• The average price of all textbooks from the store is $$ 73.79
• The average of price of all textbooks from the store is less than $$ 73.79.
• The average price of textbooks in a sample is $$ 73.79
• The average of price of all textbooks from the store is greater than $$73.79.

Based on a sample of 70 textbooks at the store, you find an average of 83.79 and a standard deviation of 29.6.

The point estimate is:  (to 3 decimals)

The 95 % confidence interval (use z*) is:  to  (to 3 decimals)

Based on this we:

• Fail to reject the null hypothesis
• Reject the null hypothesis

Answer 1

The statistical software output for this problem is:

Hence,

Hypotheses: H1: μ ≠ 73.79 H1: μ ≠ 73.79

Null hypothesis in words: The average price of all textbooks from the store is $ 73.79

Point estimate = 83.79

95% confidence interval:

76.732 to 90.848

Reject the null hypothesis