A recent article found that Massachusetts residents spent an average of $860.70 on the lottery in 2010, more than three times th
e U.S. average (http://www.businessweek.com, March 14, 2012). A researcher at a Boston think tank believes that Massachusetts residents spend significantly 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. H0: μ = 860.70; HA: μ ≠ 860.70 H0: μ ≥ 860.70; HA: μ < 860.70 H0: μ ≤ 860.70; HA: μ > 860.70
b. Specify the critical value(s) of the test at the 10% significance level. (Negative value should be indicated by a minus sign. Round intermediate calculations to 4 decimal places. Round your answer to 3 decimal places.) Critical value rev: 08_20_2013_QC_33738
c. Compute the value of the appropriate test statistic. (Negative value should be indicated by a minus sign. Round intermediate calculations to 4 decimal places. Round your answer to 2 decimal places.) Test statistic d. At α = 0.10, what is the conclusion? Reject H0; the average Massachusetts residents spent less than $860.70 on the lottery in 2010 Reject H0; the average Massachusetts residents spent no less than $860.70 on the lottery in 2010 Do not reject H0; the average Massachusetts residents spent less than $860.70 on the lottery in 2010 Do not reject H0; the average Massachusetts residents spent no less than $860.70 on the lottery in 2010 Annual Lottery Expenditures (in $)
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