Question

Hoping to lure more shoppers downtown, a city builds a new public parking garage in the central business district. The city plans to pay for the structure through parking fees. During a two-month period (61 days), daily fees collected averaged $126, with a standard deviation of $21. The consultant who advised the city on this project predicted that parking revenues would average $130 per day. Perform a test at α = 0.05 to determine if the true average revenues are actually less than $130 per day.  

a) What are the hypotheses for this test?

b) The value of the numerator of t_T =

. c) The value of the denominator of t_T =

d) Final value of t_T =

e) The degrees of freedom (df) for this problem =

f) Value of t* =

g) What comparison do you WANT between t_T and t*?

h) What does the comparison between t_T and t* ACTUALLY look like?

i) Write your conclusion for this test:

Answer 1