ZuoTi.Pro
Question

Your company is considering opening a retail store in Fairbanks, Alaska, but will do so only if average daily spending per capita is higher there than in the rest of the country. According to recent data, the average U.S. household spends $80 per day. A sample was taken in Fairbanks. From a sample of 123, the average daily expenditure was $79.10, and the standard deviation was $9.80 What is the relevant point estimate? What is the value of the test statistic? This test statistic has: O A t distribution with 123 degrees of freedom O At distribution with 121 degrees of freedom A normal distribution O A standard normal distribution O A t distribution with 122 degrees of freedom What is the p-value for this test? Allowing a 5% chance of a Type 1 error, what is your conclusion for this test? O Do not reject the null hypothesis, and conclude that the store should not be opened. O Reject the null hypothesis, and conclude that the store should not be opened. O Do not reject the null hypothesis, and conclude that the store should be opened. O Reject the null hypothesis, and conclude that the store should be opened.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

ample ige n 123 gaumple. Mean: X-44-1, σ-98. H) Relevant Polat egfimateう x-$44-1 4.8/193 9.8 ylest Statistic s Option d:) --1.0185 fn Gw.puted ,) Let tailed t-test pvalue 153 Hues Min 8gni biance level, at Whole Hoces Rgected iss; 15-39 % Option R) G) gince gana showos Speudivą qaraagas Resuut equals $8o, 80 opeuthe store

0 0
Add a comment
Know the answer?
Add Answer to:
Your company is considering opening a retail store in Fairbanks, Alaska, but will do so only...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The owners of Johnny Jim's claim that their stores average $875,000 in annual sales. You used...

    The owners of Johnny Jim's claim that their stores average $875,000 in annual sales. You used this information in deciding to open a store. Your store however has not come even close to these annual sales. You want to prove that the figures given to you were misleading, and that in fact the true population sales figures must be below $875,000 You collect annual sales figures from 55 randomly selected stores. The average in your sample turns out to be...

  • A fast-food restaurant plans a special offer that will enable customers to purchase specially designed drink...

    A fast-food restaurant plans a special offer that will enable customers to purchase specially designed drink glasses featuring well-known cartoon characters. If more than 15% of the customers will purchase the glasses, the special offer will be implemented. A preliminary test has been set up at several locations, and 22 of 100 customers purchased the glasses. Should the special offer be introduced? What is the relevant point estimate? What is the value of the test statistic? This test statistic has:...

  • 8. Hypothesis testing, problem 4 Aa Aa Microsoft Outlook is believed to be the most widely...

    8. Hypothesis testing, problem 4 Aa Aa Microsoft Outlook is believed to be the most widely used e-mail manager. A Microsoft executive claims that Outlook is used by at least 75% of Internet users. A Merrill Lynch study involving 200 respondents reported that 68% use Microsoft Outlook. Can you prove that the executive's claim is not valid? What is the relevant point estimate? What is the value of the test statistic? This test statistic has: O A t distribution with...

  • please help me check the answer, thank you! ：:) Microsoft Outlook is believed to be the...

    please help me check the answer, thank you! ：:) Microsoft Outlook is believed to be the most widely used e-mail manager. A Microsoft executive claims that Outlook is used by at least 75% of Internet users. A Merill Lynch study involving 300 respondents reported that 72% use Microsoft Outlook. Can you prove that the executive's claim is not valid? What is the relevant point estimate? 0.72 What is the value of the test statistic? -1.2000 This test statistic has: A...

  • The choices are listed in the screen shot below the questions. Only answer is needed, solving...

    The choices are listed in the screen shot below the questions. Only answer is needed, solving steps are not required. Thank you! The returns of two portfolios were recorded for fourteen years. Portfolio 1 had a variance of returns of 155, while portfolio 2 had a variance of 99. Can you conclude at a 5% level of significance that portfolio 1 is riskier (has a higher variance) than portfolio 2? The test statistic for testing this claim will have the...

  • Do consumers spend more on a trip to Store A or Store​ B? Suppose researchers interested...

    Do consumers spend more on a trip to Store A or Store​ B? Suppose researchers interested in this question collected a systematic sample from 82 Store A customers and 80 Store B customers by asking customers for their purchase amount as they left the stores. The data collected is summarized by the accompanying table. Suppose researchers decide to test the hypothesis that the means are equal. The degrees of freedom formula gives 157.41 df. Test the null hypothesis at alpha=0.05....

  • Given X, and x, distributions that are normal or approximately normal with unknown o, and on,...

    Given X, and x, distributions that are normal or approximately normal with unknown o, and on, the value of t corresponding to X, - X, has a distribution that is approximated by a Student's t distribution. We use the convention that the degrees of freedom is approximately the smaller of n - 1 and n, - 1. However, a more accurate estimate for the appropriate degrees of freedom is given by Satterthwaite's formula: 2 2 xn2 522 +$22) d.f. z...

  • 3. Testing a population mean The test statistic (Chapter 11) Aa Aa You conduct a hypothesis...

    3. Testing a population mean The test statistic (Chapter 11) Aa Aa You conduct a hypothesis test about a population mean u with the following null and alternative hypotheses: Ho: u-25.8 H1: <25.8 Suppose that the population standard deviation has a known value of a observations, which provides a sample mean of % 30.7. 17.8. You obtain a sample of n =62 Since the sample size large enough, you assume that the sample mean X follows a normal distribution. Let...

  • In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smalier....

    In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smalier. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer. At five weather stations on Trail Ridge Road in Rocky Mountain National Park, the peak wind gusts (in miles per hour) for January and April are...

  • Question 8 1 pts Suppose we are conducting a hypothesis test to see if the average...

    Question 8 1 pts Suppose we are conducting a hypothesis test to see if the average number of M&Ms one person can eat before getting sick has decreased. We calculate our test statistic on the z-table to be -1.75. Do we reject or fail to reject Ho ata = .05? O Fail to reject; the average does not seem to have fallen O Reject; the average seems to have fallen O Reject: the average does not seem to have fallen...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT