A consumer product magazine recently ran a story concerning the increasing price

Question

A consumer product magazine recently ran a story concerning the increasing price of VCR's. The story stated that VCR prices dipped in the early 1990's but now are beginning to skyrocket in price. According to the story, the average price of a VCR in 1992 was $221. use the statistix printout shown below to answer the following question regarding this story

One-Sample T Test f or VCR Price

Null hypothesis: Mu=221

Alternative Hyp: MU>221

Mean: 241.23

STD error: 15.62

Mean - Ho 30.23

T 1.935

DF 19

O .0340

Cases included: 20

a. the sample of 20 VCR prices must posses an approximate t distribution with 19 degrees of freedom.
b. the population of all VCR prices must posses an approximate t distribution with 19 degrees of freedom.
c. the sampling distribution of the sample mean must posses an approximatel6 normal distribution
d. the population of all VCR prices must posses an approximately normal distribution
2) suppose we wish to test H0: u=57 vs Ha:u>57. what will result we conclude that the mean is greater than 57 when its teue value is really 63?
a. we have made a type I error
b. we have made type II error
c. we have made a correct decision
d. none of the above

Explanation / Answer

As n = 20 is small, and we do not know the population standard deviation, then we approximate the population to have a t distribution, so

OPTION B: b. the population of all VCR prices must posses an approximate t distribution with 19 degrees of freedom. [ANSWER, B]

************************

If the true value is 63, and we conclude it is greater than 57, then that's a correct decision.

Hence,

OPTION C: c. we have made a correct decision [ANSWER]

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.