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The owner of a local nightclub has recently surveyed a random sample of n = 250

ID: 3232343 • Letter: T

Question

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club. She would now like to determine whether or not the mean age of her customers is over 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made. Suppose she found that the sample mean was 30.45 years and the sample standard deviation was 5 years. If she wants to be 99% confident in her decision, what decision should she make? Fail to reject H0. Reject H0. Accept H0. We cannot tell what her decision should be from the information given.

Explanation / Answer

The statistical software output for this problem is:

One sample T hypothesis test:
: Mean of population
H0 : = 30
HA : > 30

Hypothesis test results:

Since p - value > 0.01, we do not reject Ho and hence,

We do not have enough evidence to conclude that the mean age of her customers is over 30

Mean Sample Mean Std. Err. DF T-Stat P-value 30.45 0.31622777 249 1.4230249 0.078
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