1. Identify the null and alternative hypothesis: a. M&M- Mars claims there are l

Question

1. Identify the null and alternative hypothesis:

a. M&M- Mars claims there are less than 25 peanuts in each Mars Bar.

b. Granite Run Mall claims that the average dollar amount spent on Saturday is less than last year’s average of $50.

c. Starbucks claims that their coffee prices have not changed from $3 a cup.

2. Using the same ESPN report that the average income of an NFL players is 1.5 million (1,500,000) with a population standard deviation of $200,000. If they randomly select 500 players and determine their average income of the sample is $1,485,000. Using 5 step hypothesis testing can you support the claim on ESPN that the average income is decreasing? Use a .05 significance level.

Explanation / Answer

1)the null hypothesis will always equal

a) Ho: µ = 25 H1: µ<25

b) Ho: µ = 50 H1: µ<50

c) a) Ho: µ = 3 H1: µ25

2) Ho:  µ = 1485000 H1: µ<1485000

n=500

deviation= $200,000

average=1.5 millions

µ= 1,485,000

0.05 significance level

the Z alpha is Z=1.64 becouse alpha is 0.05

but we have to compare the Zo=(1500000-1485000)/(200000/(500)^(1/2)=1.67

Becouse - Z alpha is < Zo we acept Ho and conclud that average can be equal to or greater than the current

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