Question

Julian is a manager at a clothing store for teens. He is analyzing the order for next season. Data for the previous 10 years suggests that teens are willing to spend an average of $75 for a pair of designer jeans with a standard deviation of $5. However, Julian thinks the average may have changed due to a recession. He finds that the last three seasons of data show that teens spent an average of $68 on a pair of jeans Therefore, he performed a hypothesis test to see if the recent average is the same. Julian used a significance level of 5% to perform the test. Which of the following statements is valid based on the results?

Answer 1

Based on the results, Julian’s data shows that the recent seasons’ average jean price is not $75 is valid

To add, the null hypothesis is rejected if the p-value is less than a predetermined level, α. α is called the significance level, and is the probability of rejecting the null hypothesis given that it is true (a type I error). It is usually set at or below 5%.

Answer 2

Answer:

The answer is A)

Step-by-step explanation: