Answer
The consumer advocate’s concerns are unfounded as we fail to reject the Null hypothesis.
Work Step by Step
Here we have: $H_{o}$: μ = 10000, $H_{a}$: μ < 10000, n = 14, x̅ = 9796.286, s = 567.710 and α = 0.05
Using the Classical approach:
Using Table VI, we have: t = 1.771
$σ_{ x̅} = \frac{s}{\sqrt n} = \frac{567.710}{\sqrt 14} = 151.727$
$t = \frac{9796.286 - 10000}{151.727} = -1.34$
Since, -1.34 > -1.771, we fail to reject the Null hypothesis.
