1)
From the given data, we calculate:
n = 10
Mean (xbar) = 17529.4
Std Dev (s) = 5,081.91
Std Error (SE) = s/n1/2 = 1,607.04
2)
At alpha = 0.05,
ZCritical = 1.96
Hence,
95% CI = Mean +/- ZCritical *SE = 17529.4 +/- 1.96*1,607.04 = {14379.6,20679.2}
Interpretation
There is 95% probability that true mean lies in the interval {14379.6,20679.2}
3)
Alpha = 0.05
Null and Alternate Hypothesis
H0: µ = 15000
Ha: µ <> 15000
Test Statistic
t = (xbar - µ0)/ SE = (17529.4-15000)/ 1,607.04 = 1.57
p-value = TDIST(1.57,9,2) = 0.1499
Since the p-value is greater than 0.05, hence we fail to reject the null hypothesis
4)
When we exclude the outlier,
n = 9
Mean (xbar) = 18803.78
Std Dev (s) = 3283.84
Std Error (SE) = s/n1/2 = 1094.613
95% CI = Mean +/- ZCritical *SE = 18803.78 +/- 1.96*1094.613 = {16,658.34, 20,949.22}
Alpha = 0.05
Null and Alternate Hypothesis
H0: µ = 15000
Ha: µ <> 15000
Test Statistic
t = (xbar - µ0)/ SE = (18803.78-15000)/ 1094.613 = 3.47
p-value = TDIST(3.47,9,2) = 0.006993
Since the p-value is less than 0.05, hence we reject the null hypothesis.
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