The price for each reindeer harness is 17.95 what is the price for reindeer harnesses? Challenge if tax rate is 14% , how much w
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Answer:
The critical value for a one-tailed test with 7 degrees of freedom and level of significance α=0.01 is tc=2.998.
The test statistic (t=1.729) is below the critical value and falls within the acceptance region, so it is failed to reject the null hypothesis.
At a significance level of 0.01, there is not enough evidence to support the claim that the true difference is significantly bigger than 0.
Step-by-step explanation:
We have a matched-pair t-test for the difference.
We have the null and alternative hypothesis written as:
We have n=8 pairs of data. We calculate the difference as:
Then, with this procedure we get the sample for d:
The sample mean and standard deviation are:
Now, we can perform the one-tailed hypothesis test.
The significance level is 0.01.
The sample has a size n=8.
The sample mean is M=7.25.
As the standard deviation of the population is not known, we estimate it with the sample standard deviation, that has a value of s=11.86.
The estimated standard error of the mean is computed using the formula:
Then, we can calculate the t-statistic as:
The degrees of freedom for this sample size are:
This test is a right-tailed test, with 7 degrees of freedom and t=1.729, so the P-value for this test is calculated as (using a t-table):
As the P-value (0.0637) is bigger than the significance level (0.01), the effect is not significant.
The null hypothesis failed to be rejected.
At a significance level of 0.01, there is not enough evidence to support the claim that the true difference is significantly bigger than 0.
If we use the critical value approach, the critical value for a one-tailed test with 7 degrees of freedom and level of significance α=0.01 is tc=2.998. The test statistic is below the critical value and falls within the acceptance region, so it is failed to reject the null hypothesis.