Question

Consider the Christmas sales of the new BeCool Headsets e 12, which runs at $500 dollars and was released June. In 2018, surveyed owners of older BeCool products spent $1200 on their holiday shopping. (Five hundred dollars would be nearly half of their holiday budget for a single item.) In 2019, the 61 surveyed customers spent an average of $1220, with a standard deviation of $40. Has customer spending increased?   

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EX 5: Hypothesis Testing: Read CANVAS assignment- THIRD PROBLEM: If GID ends odd, if GID ends even Kind of Variable: null value: Null Hypothesis: Alternative Hypothesis: equation for test statistic equation for standard error Calculate test statistic: Draw Sampling Distribution Indicating null hypothesis, a, and test statistic locations. Use software to calculate p-value. Decision concerning the null hypothesis: Interpret results:

Answer 1

5.

Kind of variable = Mean

null value = 1200

H0: $\mu$ = 1200

H1: $\mu$ > 1200

n = 61

$\bar{x}$ = 1220

s = 40

Std. error = s/$\sqrt{n}$

Let $\alpha$ = 0.05

Since the population mean is not known, we will use the t-test.

(3) Test Statistics The t-statistic is computed as follows: X - Mo t = 1220 – 1200 40/61. = 3.905 s/V%

T-Test Results: t-stats = 3.905, p-value =0.0001 0.00 -4.0 -3.5 -3.0 -2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 2.5 3.0 3.5 14.0 1.5 2.0 1.671

df = n-1

= 60

p-value = 0.0001

Since p-value = 0.0001 < 0.05 i.e. we can reject null hypohtesis and hence we can claim that the mean customer spending has  customer spending increased.

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