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Question 1 A national publication reported that a college student living away fr

ID: 3309665 • Letter: Q

Question

Question 1 A national publication reported that a college student living away from home spends, on average, no more than $15 per month on laundry. You believe this figure is too low and want to disprove this claim. To conduct the test, you randomly select 16 college students and ask them to keep track of the amount of money they spend during a given month for laundry. The sample produces an average expenditure on laundry of $19.38, with a population standard deviation of $4.58. Use these sample data to conduct the hypothesis test. Assume you are willing to take a 5% risk of making a Type I error and that spending on laundry per month is normally distributed in the population. Appendix A Statistical Tables (Round your answer to 2 decimal places.) The value of the test statistic is and we

Explanation / Answer

for 5% level ; critical value of z =1.645

Decision rule: reject null if test statistic z>1.645

here std error of mean =std deviation/(n)1/2 =4.58/(16)1/2 =1.145

therefore test statistic z=(X-mean)/std error =(19.38-15)/1.145=3.83

therfore:

the value of the test statistic is 3.83 and we reject null hypothesis,

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