1. A small electronics store has begun to advertise in the local newspaper. Befo

Question

1. A small electronics store has begun to advertise in the local newspaper. Before advertising, the long term mean weekly sales were $9820. A random sample of 10 weeks while the newspaper ads were running had a sample mean of $10,960 and a sample standard deviation of $1580. From previous data, the distribution of weekly sales is known to be approximately a normal distribution. At the 5% significance, does the data provide sufficient evidence to claim that the population mean weekly sales is now more than $9820. (a) State the null and alternate hypotheses. (b) What is the level of significance? (c) Is this a right-tailed, left-tailed, or two-tailed test? (d) List each assumption and show information to determine if the assumptions are met for testing this hypothesis.

Which of the following test procedures is used to test the hypothesis stated in part (a)? NOTE: COMPUTATION OF THE P-VALUE NOT REQUIRED.

One mean - Z test

One Mean - t test

Cannot do test (State why)

If the p-value is 0.0242, is Ho rejected or not?

Write the interpretation of the results of the hypothesis test.

Explanation / Answer

a) H0: u=9820,

H1 : u > 9820

b) significance level is alpha =0.05

c) it right tailed test

d)

here t test can be performed as n values is also given

Z = (10960 - 9820) / (1580/sqrt50)= 5.109

P-value is less than (or equal to) , then the null hypothesis is rejected

so here pvalue is 0.0242 so h0 is rejectd

there fore there is a sufficent evidence is there say that population weekly sales are greater than 9820

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