One of the most difficult things to do in statistics is to determine the correct
ID: 2947875 • Letter: O
Question
One of the most difficult things to do in statistics is to determine the correct hypothesis test to do for a given scenario.
Determine the most appropriate hypothesis test to use for the following scenario:
**************************
Each year, Kiplinger’s compiles its list of Best Value Cities. One of the statistics used in this ranking is the cost-of-living index compiled by the US Department of Labor Bureau of Labor Statistics. The index measures the cost of living in a city relative to the national average of 100. In 2011, Pueblo Colorado had the lowest index (84), while New York City had an index of 118. The following table lists the cost of living for seven Southeastern US cities:
City
Cost of Living Index (US mean = 100)
Charlotte, NC
93.0
Birmingham, AL
89.6
Florence, SC
100.0
Tampa, FL
92.1
Atlanta, GA
95.2
Knoxville, TN
89.7
Miami, FL
107.7
Is the true mean cost of living index for Southeastern US cities lower than the national mean cost-of-living index of 100? Test at 2% significance level.
The most appropriate hypothesis test to use for this scenario is:
Question options:
A)
z test for single population proportion
B)
z – test for single sample
C)
z – test for single population mean
D)
t test for single population mean
E)
t - test for single sample
City
Cost of Living Index (US mean = 100)
Charlotte, NC
93.0
Birmingham, AL
89.6
Florence, SC
100.0
Tampa, FL
92.1
Atlanta, GA
95.2
Knoxville, TN
89.7
Miami, FL
107.7
Explanation / Answer
Here we are testing the mean and we dont know the standard deviation so we will use t test for single population mean.
Option D is correct.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.