Question

Average cost of a visit to a vet clinic for a dog in 2004 was $60....

Average cost of a visit to a vet clinic for a dog in 2004 was $60. A recent random sample of 55 visits had a mean of $63.50 and a standard deviation of $2.00. Have costs increased? Use  = 0.05.

Math   Statistics-And-Probability   
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Answer #1

Solution :

= 60

= 63.50

s = 2

n = 55

This is the right tailed test .

The null and alternative hypothesis is

H0 :   = 60

Ha : > 60

Test statistic = t

= ( - ) / s / n

= (63.50- 60) /2 / 55

= 12.978

P-value = 0

= 0.05  

0 < 0.05

Reject the null hypothesis .

There is sufficient evidence to suggest that Average cost  increased.

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