Question

sample 14 similar cars and find a mean price of $19,850 with a standard deviation of $1184 12. Find the test statistic (t.s.) for your sample. (the formula is: t.) a) 2.24 b) -2.24 c 16 d) 16 e) none of these Find the critical t-score (t ) for the two tailed test with α-05. a) ±1.96 13. b) ±2.16 c) ±1.77 d) ±1.76 e) none of these

Answer 1

Given that, sample size ( n ) = 14

sample mean $(\bar x)$ = $19850

sample standard deviation ( s ) = $1184

The null and alternative hypotheses are,

$H_0: \mu = \$20500$

$H_a: \mu \neq \$20500$

Q.12) Test statistic is,

$t = \frac { 19850 - 20500}{\frac { 1184 }{\sqrt { 14}}} = -2.05$

t.s. = -2.05

Answer: e) none of these

Q.13) t-scores ( t_c) for the two tailed test at $\alpha = 0.05$ with df = 14 -1= 13 is, t_c = +/- 2.16

Answer: b) +/- 2.16

Q.14) t-scores ( t_c ) for the two tailed test at $\alpha = 0.05$ with df = 14 - 1 = 13 are t_c = +/- 3.01

Answer: b) +/- 3.01

Q.15)

t.s. = -2.05 > -2.16

So, we fail to reject the null hypothesis ( H₀).

t.s. = -2.05 > -3.01

So, we fail to reject the null hypothesis ( H₀).

Answer: d) FTR H₀ at $\alpha = 0.05$ and $\alpha = 0.01$