Question

A popular charity used 29% of its donations on expenses. An organizer for a rival charity wanted to quickly provide a donor with evidence that the popular charity has expenses that are higher than other similar charities. The organizer randomly selected 20 similar charities and examined their donations. The charity conducts a one-mean hypothesis at the 5% significance level, to test whether the mean is less than 29%.
(a) Which answer choice shows the correct null and alternative hypotheses for this test.
H0:μ=0.29; Ha:μ<0.29, which is a left-tailed test.
(b) The percentages of the donations that those 20 charities spend on expenses are given below.
Use Excel to test whether the mean is less than 29%. Identify the test statistic, t, rounding to two decimal places, and p-value, rounding to three decimal places from the Excel output.
21
9
24
14
25
31
23
37
19
25
31
20
41
32
26
32
27
35
5
25
Test Statistic= P-value=

Answer 1

Answer:

• we will reject H0:u=0.29 ( null hypothesis )

• Test static = -1.94, P-value ≈ 0.034

Step-by-step explanation:

Given data

significance level = 0.05

we will reject H0:u=0.29 ( null hypothesis )

This is because at 5% percent significance level the data gotten using excel

i.e. Test statistic = -1.94  and P-value = 0.034 it is evident that the charity used less than 29% of its donations for its expenses.