Question

Suppose that BC financial aid allots a textbook stipend by claiming that the average textbook at BC bookstore costs $$ 57.28. You want to test this claim.

The null and alternative hypothesis in symbols would be:

• H0:μ≤57.28H0:μ≤57.28
  H1:μ>57.28H1:μ>57.28
• H0:p≥57.28H0:p≥57.28
  H1:p<57.28H1:p<57.28
• H0:μ≥57.28H0:μ≥57.28
  H1:μ<57.28H1:μ<57.28
• H0:p=57.28H0:p=57.28
  H1:p≠57.28H1:p≠57.28
• H0:p≤57.28H0:p≤57.28
  H1:p>57.28H1:p>57.28
• H0:μ=57.28H0:μ=57.28
  H1:μ≠57.28H1:μ≠57.28

The null hypothesis in words would be:

• The average of price of all textbooks from the store is less than $$ 57.28.
• The average price of all textbooks from the store is $$ 57.28
• The average price of textbooks in a sample is $$ 57.28
• The proportion of all textbooks from the store that are less than 57.28 is equal to 50%
• The average of price of all textbooks from the store is greater than $$ 57.28.

Based on a sample of 150 textbooks at the store, you find an average of 60.48 and a standard deviation of 12.8.

The point estimate is:  (to 3 decimals)

The 95 % confidence interval (use z*) is:  to  (to 3 decimals)

Based on this we:

• Fail to reject the null hypothesis
• Reject the null hypothesis

Answer 1

For 95% confidence intervals, alpha=0.05

Hence,value of z_alha/2=1.96