What is the selling price of an item if the original cost is $784.50 and the markup on the item is 6.5 percent?
2 answers:
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Answer:
t-value = 2.441
Step-by-step explanation:
Let's assume that this is a one-tailed test to calculate the critical value, the process is this:
- Calculate alpha (α): α = 1 - (confidence level / 100) , but we already have this α=0.01
- Find the critical probability (p*): p* = 1 - α/2 = 1-0.005=0.995
- Then, the critical value would be shown as a t statistic, but for this we need:
degrees of freedom (df)= n-1=35-1=34
- The critical t statistic (t*) or critical value is the t-value having degrees of freedom equal to 34 and a cumulative probability equal to 0.995.
From the attached table we can see:
t-value = 2.441
