Question

A company claims that the average monthly expenditure of its customers is greater than $175. The results of a sample of customers’ monthly expenditures is below.

?̅= 176, ? = 10, ? = 50 At ? = 0.01 , is there enough evidence to support the company’s claim?

1). State the hypothesis and label which represents the claim: : H 0 : H a

2). Specify the level of significance  =

3). Sketch the appropriate distribution and label it appropriately as Z or t.

4). Write the formula for the test statistic, including all necessary values, and give its computed value.

5). Find the P-value corresponding to the test statistic. Shade in and label the P-value in the distribution above.

6). Decision: Reject H 0 or Do not reject H 0 :

7). Write a statement to interpret the decision in the context of the original claim.

Answer 1