Question

General Mills is concerned about the price retailers are charging for their highest rated cereal, Lucky Charms. They want you to test if the price retailers are charging differs from the average price of their competitor’s top selling brand, Captain Crunch. The Oats Company requires that all stores sell Captain Crunch for $3.99. You, the pricing manager for General Mills, sample 35 different grocery stores and find that the average price they charged was $3.91 and had a variance of 0.0576.

Calculate the appropriate test statistic needed to test your claim. Round your final answer to 4 decimals. Hint: Make sure you are using the correct formula based on the information given in the problem.

Find and enter the correct critical value needed to test your claim at the 5% significance level. Round your final answer to 4 decimals. Hint: Things you will need to know: alpha, df, is this one or two-tailed test, and which table to use!

Answer 1