Homework Answers
H0 : mu = 13252
Ha: mu > 13252
Here, t test should be used
t = (xbar - mu)/(sigma/sqrt(n))
= ( 15560 - 13252)/(3500/sqrt(20))
= 2.949
Critical value = 2.539
Reject H0 if t > 2.539
p value = 0.0041
Reject H0
There is sufficient evidence to support theclaim that the mean cost
has increased
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