1On January 3, Carothers Corporation acquired $200,000 in new equipment in exchange for cash of $170,000 cash and a trade-in of
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Answer:
We fail to reject the Null hypotheses that the average amount of money a typical college student spends per day is less than $70.
Explanation:
A professor of statistics claimed that the average amount of money a typical college student spends per day during social distancing at home is over $70.
Based upon previous research, the population standard deviation is estimated to be $17.32.
The professor surveys 35 students and finds that the mean spending is $67.57.
Is there evidence that the average amount spent by students is less than $70?
For the given problem the Null hypotheses is that the average amount of money a typical college student spends per day is less than $70.
For the given problem the Alternate hypotheses is that the average amount of money a typical college student spends per day is over $70.
The test statistic is given by
Where X_bar is the sample mean spending that is $67.57, μ is the average population spending that is $70, σ is the standard deviation that is 17.32 and n is the sample size that is 35.
The p-value corresponding to the z-score of -0.83 at significance level 0.10 is found to be
p-value = 0.2036
Since 0.2036 > 0.10
We fail to reject the Null hypotheses that the average amount of money a typical college student spends per day is less than $70.