Question

Easter candy expenditure per consumer is normally distributed with a standard deviation of $3.26. A candy manufacturer claims that the average Easter candy expenditure per consumer is no less than $25. Seventeen consumers were randomly selected. The average Easter candy expenditure per consumer was found to be $23.86 with a standard deviation of $4.30. Can you reject the candy manufacturer's claim at α=.01?

For the hypothesis stated above, what is the test statistic?

	a.	-2.6033
	b.	-0.3497
	c.	-1.0931
	d.	-1.4418
	e.	None of the answers is correct

Answer 1

Solution,

The null and alternative hypothesis is ,

H0 :   = 25

Ha : < 25

= 23.86

s = 4.30

n = 17

= 0.01

Test statistic = t =

= ( - ) / s / n

= (23.86 - 25) / 4.30 / 17

Test statistic = t = -1.0931

correct option is = c