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aksik [14]
3 years ago
11

The cost of a daily newspaper varies from city to city. however, the variation among prices remains steady with a standard devia

tion of 20?. a study was done to test the claim that the mean cost of a daily newspaper is $1.00. ten costs yield a mean cost of 96? with a standard deviation of 18?. do the data support the claim at the 1% level?
Mathematics
1 answer:
Tanya [424]3 years ago
6 0

First, we establish our hypothesis:

<span>Null hypothesis H0: μ = $1.00  </span>

Alternative hypothesis Ha: μ ≠ $1.00

<span>Let’s say X  = the sample average cost of a daily newspaper = 0.96</span>

u = population mean cost = 1.00

S = sample standard deviation = 0.18

Calculating for z value:

z = (X – u) / S

z = (0.96 – 1) / 0.18

z = – 0.222

From the standard distribution table at this z value, p-value = 0.4129

Since alpha = 0.01, the decision therefore is:

<span>Do not reject the null hypothesis because the p-value is greater than 0.01. There is enough evidence to support the claim that the mean cost of newspapers is $1. </span>

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