Answer to Question #100231 in Statistics and Probability for sofia

Question

Question
State which test (z-test, t-test, ANOVA, χ2 test) is most suitable for each of the following case
(b) A mobile phone manufacturer has designed a new model of mobile phone and has invited 40 customers to take part in a trial session. After the trial session, the customers are invited to state their comments on the phone as well as to indicate how much they are willing to pay for this mobile phone. The results indicate that on the average a customer is willing to spend $5500 for it. Assume that the population standard deviation is the same as the old model, which is $1150. The director of the manufacturer suggests selling this new mobile phone at $6000. Test, at 3% significant level, whether the result collected from the trial session indicates the population mean amount a customer is willing to pay for this mobile phone is lower than the director’s suggestion.

Answer 1

Since the population standard deviation is known, one-sample, left tailed z-test should be used.