Each child at a birthday party was given $5 to spend at the arcade on games and rides. Each game costs $0.25 and each ride costs
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Answer:
The null and alternative hypotheses are:
Under the null hypothesis, the test statistic is:
Where:
is the sample mean
is the sample standard deviation
is the sample size
Now, we can find the right tailed t critical value at 0.01 significance level for df = n-1 = 10 - 1 = 9 using the t distribution table. The t critical value is given below:
Since the test statistic is less than the t critical value, we therefore, fail to reject the null hypothesis and conclude that there is not sufficient evidence to support the claim that the people do better with the new edition.