Elementary Statistics: A Step-by-Step Approach with Formula Card 9th Edition

Published by McGraw-Hill Education
ISBN 10: 0078136334
ISBN 13: 978-0-07813-633-7

Chapter 8 - Hypothesis Testing - 8-2 z Test for a Mean - Exercises 8-2 - Page 436: 12

Answer

The null hypothesis is rejected and this means that these results indicate that the average expenditure has changed.

Work Step by Step

Given that, $\mu=10337, \sigma=1560, n=150, \bar x =10798$, then, $H_{0}:\mu=10337.\\ H_{1}:\mu \ne10337.$ Let $\alpha=0.05$, then, $Z_{0.025}=1.96$, the critical region is $R-(-1.96,+1.96)$. $Z=\frac{\bar x- \mu}{\frac{\sigma}{\sqrt{n}}}=\frac{10798- 10337}{\frac{1650}{\sqrt{150}}}\approx 3.42$ Since Z=3.42 lies in the critical region, the null hypothesis is rejected.
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