Question

An article found that Massachusetts residents spent an average of $860.70 on the lottery in 2010, more than three times the U.S. average (www.businessweek.com, March 14, 2012). A researcher at a Boston think tank believes that Massachusetts residents spend less than this amount. He surveys 100 Massachusetts residents and asks them about their annual expenditures on the lottery. (You may find it useful to reference the appropriate table: z table or t table)
 

  Click here for the Excel Data File

 

a. Specify the competing hypotheses to test the researcher’s claim.

 

multiple choice 1

• H₀: μ = 860.70; H_A: μ ≠ 860.70

• H₀: μ ≥ 860.70; H_A: μ < 860.70

• H₀: μ ≤ 860.70; H_A: μ > 860.70

 

b-1. Calculate the value of the test statistic. (Negative value should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

 

 

b-2. Find the p-value.

 

multiple choice 2

• p-value ≤ 0.01

• 0.01 < p-value ≤ 0.025

• 0.025 < p-value ≤ 0.05

• 0.05 < p-value ≤ 0.10

• p-value > 0.10

 

c. At α = 0.10, what is the conclusion?

 

multiple choice 3

• Reject H₀; there is insufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Reject H₀; there is sufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Do not reject H₀; there is sufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Do not reject H₀; there is insufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

rev: 06_08_2020_QC_CS-215505

Answer 1