The Gainey Ranch Golf Club wants to advertise in the magazine “Tempe Living” onl

Question

The Gainey Ranch Golf Club wants to advertise in the magazine “Tempe Living” only if the average age of the magazine’s readers is greater than 40. A random sample of 625 readers had an average age of 41, with a standard deviation of 20. Suppose the firm does not want more than a 5 percent chance of making the mistake of advertising in a magazine that does not reach their audience. Should they advertise in this magazine? Also, what is Ho and what is Ha (is this a one-tailed or a two-tailed test, and please state the decision rule for rejecting )

Explanation / Answer

here Ho:mean =40

Ha: mean >40

hhere std error=std deviation/(n)1/2 =0.8

hence test stat t=(X-mean)/std error =(41-40)/0.8 =1.25

for above p value =0.1056

as p value is greater then 5% level, we can not reject null hypothesis, hence Should not advertise in this magazine

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