Hi, I need the answer for this question. Thanks for your support :) A music indu

Question

Hi, I need the answer for this question. Thanks for your support :) A music industry professional claims that the average amount of money that an average teenager spend per month on music at least euro 50. Based upon previous research, the population standard deviation is estimated to be euro 6.21. The music professional surveys 20 students and finds that the mean spending is euro 47.77. Is there evidence that the average amount spent by students is less than euro 50 at a significance level of alpha = 10%?

Explanation / Answer

here null hypothesis: mean =50

alternate hypothesis: mean <50

std error -of mean =std deviaiton/(n)1/2 =6.21/(20)1/2 =1.3886

therefore test stat =(X-mean)/std errror =(47.77-50)/1.3886=-1.6059

for above p value =0.0541

as p value is less then 0.10 level of significance we reject null hypothesis.

there is sufficient evidence to conclude that average amount spent by students is less then 50 at al significance level of 10%.

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