A canteen owner claims that the average meal cost of his usual clients is
Php180. In order to test his own claim, he took a random sample of 30
receipts and computed the mean cost of Php210 with a standard deviation of
Php25. Test the hypothesis at 0.01 level of significance. Show all steps
The following null and alternative hypotheses need to be tested:
This corresponds to a two-tailed test, for which a t-test for one mean, with unknown population standard deviation, using the sample standard deviation, will be used.
Based on the information provided, the significance level is and the critical value for a two-tailed test is
The rejection region for this two-tailed test is
The t-statistic is computed as follows:
Since it is observed that it is then concluded that the null hypothesis is rejected.
Using the P-value approach:
The p-value for two-tailed, degrees of freedom, is and since it is concluded that the null hypothesis is rejected.
Therefore, there is enough evidence to claim that the population mean is different than 180, at the significance level.
Comments
Leave a comment