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Problem (12 points) Test at 0.05 significance level the claim in a college catalog that the mean price of a textbook at the c #2 please
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Answer #1

2. Here claim is that mean is less than 200

So hypothesis here is Ho :μ = 200 vs H, :μ< 200

As population standard deviation is known we will use z statistics

- и 182.9 – 200 121 .8 — = -1.03

P value is Plz < -1.03) = 0.1515 > a=0.10

As P value is greater than alpha we fail to reject the null hypothesis

Hence we do not have sufficient evidence to support the claim that mean is less than 200.

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