Cliflord lkes dogs. He wondered how much dog owners spend on their dogs in a yea

Question

Cliflord lkes dogs. He wondered how much dog owners spend on their dogs in a year. He hypothesized that dog owners spend more than $1000 a year on their dogs, on average. He sampled 75 dog owners in a local community and found that these 75 dog owners spent an average $1075 on e dos in a year. Supposeo-$175.Asssume that these 75 dog owners ace represertative of all dog owners in berms of amount spent on heir dogs in a year The z-statistic in this problem is 3.71. What does this mean? Choose the corect arswer below. A. The sample mean, S 1075, is 171 standard deviations greater than te popunon mean, which is S1000 if te n. hypothesis is true. O B. The standard deviation of the distribution of sample means is 3.71 OC. The standard deviation ofthe sample data is 371. O D. The standard deviation of the disibution of sample means is 3.71 standard deviations from the populason mean of $1000 O E. The sample mean $1075, is 371 dimes langer than the hypothesized value of the population mean Click to select your answer 2018/9/21

Explanation / Answer

The value of z-statistic for a sample mean provides us the distance in terms of number of standard deviations that the sample mean is away from the hypothesized value of the population mean.

Hence, for the given question statement:

The sample mean, $1075, is 3.71 standard deviations greater than the population mean, which is $1000 if the null hypothesis is true.

Hence, option-A is the correct answer

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