Keisha is babysitting at $8 per hour to earn money for a car. So far she has saved $1300. The car that Keisha wants to buy costs
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Answer: We reject the null hypothesis, and we use Normal distribution for the test.
Step-by-step explanation:
Since we have given that
We claim that
Null hypothesis :
Alternate hypothesis :
There is 5% level of significance.
So, the test statistic would be
Since alternate hypothesis is left tailed test.
So, p-value = P(z≤-2.31)=0.0401
And the P-value =0.0401 is less than the given level of significance i.e. 5% 0.05.
So, we reject the null hypothesis, and we use Normal distribution for the test.