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. 

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

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.)  

c. At a 0.10, what is the conclusion? 

Expenditures: 790

594

899

1105

1090

1197

413

803

1069

633

712

512

481

654

695

426

736

769

877

777

785

776

1119

833

813

747

1244

1023

1325

719

1182

528

958

1030

1234

833

745

985

774

1002

561

681

546

777

844

856

785

1289

502

703

334

1140

594

719

1002

943

1025

969

576

627

989

915

662

802

876

962

878

668

1227

947

864

1016

1022

723

665

1072

610

538

992

978

1291

1139

1111

873

850

941

845

639

495

1016

939

974

893

645

1098

788

682

686

764

759

Answer 1

Ans:

a)

b-1)

Test statistic:

t=(841.94-860.7)/(217.1525/sqrt(100))

t=-0.864

b-2)df=100-1=99

p-value=tdist(0.864,99,1)=0.1948

p-value>=0.1

c)Last option is correct.

Do not reject H₀.There is insufficient evidence to state that