Question

answer part D only. You find 8 bands who use videos to enhance their club-level concerts. They report that the average set up cost was videos $7,700, with a standard error of $2,100. Use the T-distribution calculator to answer the following questions: a) Based on this sample, what percent of bands had video enhancement set up costs of less than $6,000? Round to the 0.1% b) You define a “big video spender” as a band which is in the 90th percentile (or higher) on how much they spend on video enhancement set up costs. Based on this sample, what is the lowest level of spending on video enhancement set up costs that would qualify a band as a “big video spender?” Round to the dollar. c) Use the T-distribution calculator to generate an 95% confidence interval regarding the average amount which bands that do club-level video concert enhancements spend on their set up costs. Round to the dollar. d) A College graduate starts a company which helps bands set up video enhancements, and is debating what fee to change customers. She hopes to advertise services for $75/hour, but will do so only if she is at least 90% certain that the average band which does video enhancements spends more than $7000 on its set up costs. i) Write HA, H0, and the alpha level. ii) Run a T-test. What is the p-value? Round to the\ 0.001. iii) Based on this survey, does the company advertise services for $75/hour? (For credit, your answer must be both correct and consistent with your answer to part ii.)

Answer 1