A sample of 11 discount brokers showed a sample mean price charged for a trade o
ID: 3259793 • Letter: A
Question
A sample of 11 discount brokers showed a sample mean price charged for a trade of 100 shares at $50 per share was $35.80. Assume a population standard deviation of $6.40. Test the hypothesis that the mean price charged for a trade of 100 shares at $50 per share is at most $32 at a=0.0250. For the hypothesis stated above 1. What is the test statistic? (Answer must be typed to either 2 or 3 decimals depending on whether the Z table is appropriate). 2. What is the decision? Either A or B? A. Reject H0 B. Fail to reject H0 3. What is the p value ? Fill in only ONE of the following statements. A. If the Z table is appropriate, p value = ___ B. If the t table is appropriate, ___ < p-value < ___
Explanation / Answer
Here,
We know the population standard deviation so we will use z test.
The statistical software output for this problem is:
One sample Z hypothesis test:
: Mean of population
H0 : = 32
HA : > 32
Standard deviation = 6.4
Hypothesis test results:
Hence,
1. Test statistic = 5.94
2. Decision: A Reject Ho
3. A If the z table is appropriate, p value = 0.0000
Mean n Sample Mean Std. Err. Z-Stat P-value 100 35.8 0.64 5.9375 <0.0001Related Questions
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