The Nero Match Company sells matchboxes that are supposed to have an average of
ID: 3229667 • Letter: T
Question
The Nero Match Company sells matchboxes that are supposed to have an average of 40 matches per box, with = 8. A random sample of 97 matchboxes shows the average number of matches per box to be 42.8. Using a 1% level of significance, can you say that the average number of matches per box is more than 40?
(a) What is the level of significance?
(b) What is the value of the sample test statistic? (Round your answer to two decimal places.)
(c) Find the P-value. (Round your answer to four decimal places.)
Explanation / Answer
Solution:
Given = 8
Test Hypothesis:
Ho: = 40
Ha: > 40
b) Z(42.8) = (42.8-40)/[8/sqrt(40)] = 2.2136
c) p-value = P(z > 2.2136) = normalcdf(2.2136,100) = 0.01345
a) Since the p-value is less than 1%, reject Ho at the 1%
level of significance.
Conclusion: The test results do not support saying the mean number is 40.
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