A scrap metal dealer claims that the mean of his cash sates is \'no more than S8

Question

A scrap metal dealer claims that the mean of his cash sates is 'no more than S80 ' However, an IRS agent believes the dealer is being untruthful Assume that the population standard deviation is unknown Observing a random sample of 20 cash customers the IRS agent finds the mean purchase to be $91, with a standard deviation of $21 Assume the population is normally distributed and assume a 0 05 level of significance Assume a t_ value of 1 7291 the hypotheses are as follows H_0: mu 80 (the mean of cash sates is greater than $80) right-tailed test three-tailed test two-tailed test left-tailed test

Explanation / Answer

This is a right-tailed test single sample test. Here, we have to reject the hypothesis that the mean purchase is not greater than 80. Hence, this is a right-tailed test.

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