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 
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
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