An oven repairer says that the mean repair cost for damaged ovens = $100. A rand

Question

An oven repairer says that the mean repair cost for damaged ovens = $100. A random smaple

of five microwave ovens has a mean (x-bar) repair cost of $85 and a standard deviation, s = $12.50.

Test the claim that the cost is less than $100.

What sampling distribution will you use?

The standard normal, since is unknown.

The Student's t, since is known.

The Student's t, since is unknown.

The standard normal, since is known.

The standard normal, since is unknown.

The Student's t, since is known.

The Student's t, since is unknown.

The standard normal, since is known.

Explanation / Answer

Solution :

Given that ,

= $100 , n = 5 , x-bar = $85 and a standard deviation, s = $12.50.

Here n < 30 and population standard deviation is unknown and sample standard deviation is known so we use

Students t distribution .

So correct option is, the Student's t, since is unknown.

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