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The marketing director of AB Cola is worried that the product is not attracting

ID: 3292880 • Letter: T

Question

The marketing director of AB Cola is worried that the product is not attracting the young adult (18-30 years) consumer. To test his she randomly surveys 36 AB Cola consumers. The mean age of adults in the community is 32. The surveyed consumers of AB Cola have a mean age of 35 with a standard deviation of 10 years. Is their sufficient evidence to conclude that AB Cola’s customers are, on the average, older than the average adult in the community? = 0.01.

Ho:_____________

           

Ha:_____________

Test Statistics: _______________________

Decision Rule: _______________________

Decision: _____________________

Interpretation: ___________________

Explanation / Answer

Ho:=32

           

Ha: :>32

           

Test Statistics: t=(xbar-32)/(s/sqrt(n))

=(35-32)/(10/sqrt(36))

=1.8

Decision Rule: degree of freedom=n-1=36-1=35

Right tailed Critical t at 0.01 level is t==2.4377

We reject H0 is calculated t>2.4377 otherwise retain it

Decision: As calculated t<2.4377, we do not reject the null hypothesis

Interpretation: We conclude that AB Cola’s customers are not , on the average, older than the average adult in the community