Question

The management of the Green Bay Packers football team would like to test the hypothesis that the average price of a ticket is less than $225 on the secondary market. A random sample of 40 customers paid an average of $207 for their ticket. Assume that the standard deviation of the price of tickets for Packers games is $43. The Green Bay Packers would like to set a=0.01. Use the critical value approach to test this hypothesis.

Answer 1

Answer:

we reject H₀ we have enough evidence to say that tickets are cheaper in secondary market

Step-by-step explanation:

The situatin have to be evaluate with a left tail test

We have Normal Distribution

1.- Hypothesis

 H₀            ⇒    μ₀  = 225

 Hₐ            ⇒    μₐ  ≠ 225

2.-Critical values :

We find α = 0.01      and z(c) = - 2.324

3.- z(s) = ( μ - μ₀ ) /( σ/√n)        ⇒ z(s) = (207 -225)/ (43/√40)

     z(s) = - 18 *√40/  43           ⇒ z(s) = -113,84/ 43

     z(s) = - 2.6474

4.-Evaluation

z(s) < z(c)         - 2.64  <   - 1.64  

z(s) is in rejection zone we reject H₀