Question

A marketing executive states that viewers between the age of 18-25 yoa spend an average of 40 minutes per day watching Netflix. You think the average is higher than that.

The following information came from your random sample of viewers: sample mean = 42 minutes, n = 25. Assume σ = 5.5, and α = 0.10.

a.State the null and alternative hypotheses.

b. Calculate the value of the test statistic.

c. Determine the p-value.

d. Interpret the result.

Answer 1

a) H₀ : µ = 40

H_a : µ > 40

b)

n = 25

Test statistic, z

                       

                        = 1.82

c) p-value = P(Z > 1.82) = 1 - P(Z < 1.82) = 1 - 0.9656 = 0.0344

d) Since, p-value is less than the significance level of 0.1, we should reject the reject null hypothesis.

There is enough eveidence to support that the average is higher than 40