the the indicaned csct \'-hnology to In L- Please follow these instructions for

Question

the the indicaned csct '-hnology to In L- Please follow these instructions for # 69 For each of the following problems, please provide the requested information: a) State the null and alternative hypotheses. Will you use a left-tailed, ri tailed test? What is the level of significance? right-tailed or two b) Sketch the critical region and show the critical values on the sketch. c) Run the test d) List the P and z values if applicable or just the t values used. 6. A large furniture store has begun a new ad campaign. Before the campaign the long term average daily sales were at most $24,819. They now claim that the mean daily sales are now more than $24,819. A random sample of 40 days during the new ad campaign gave a sample mean daily sales of S25820 ( -S1917) Does this indicate that the claim is correct? Use a 1% level of significance.

Explanation / Answer

Solution:

Here, we have to use one sample z test for population mean.

Null hypothesis: H0: µ 24819

Alternative hypothesis: Ha: µ > 24819

This is one tailed test. This is an upper tailed or right tailed test.

We are given level of significance = = 0.01

Test statistic formula is given as below:

Z = (Xbar - µ) / [/sqrt(n)]

We are given

Xbar = 25820

= 1917

n = 40

Z = (25820 – 24819) / [1917/sqrt(40)]

Z = (25820 – 24819) /303.1043

Z = 3.3025

Upper critical value = 2.3263 (by using z-table or excel)

P-value = 0.0005 (by using z-table or excel)

P-value < = 0.01

So, we reject the null hypothesis that the mean daily sale is at most $24,819.

There is sufficient evidence to conclude that the mean daily sale is greater than $24,819.

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