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Hypothesis test, Decision Rule, and Test Statistics

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A consumer magazine randomly selected 100 new hybrid car dealers from across the country, and created a list of retail prices. They want to know if the price differs from $25,000.
RQ: Is the average hybrid car dealer retail price different than $25,000 with a 95% confidence level? Use Alpha = .05
A. Choose the Hypothesis
H1: μ≠ $25,000. The mean hybrid car retail price is different than $25,000 with a 95% confidence level.
B. Specify the Decision Rule
C. Calculate the Test Statistic, P-value
D. Make the Decision
E. Give an interpretation of the Decision

Attach your Excel document with calculations.

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Solution Preview

Let μ be the average hybrid car dealer retail price

A. Choose the Hypothesis
H0: μ=25000 or the average hybrid car retail price is $25,000.
H1: μ≠ $25,000 or the average hybrid car ...

Solution Summary

The solution gives detailed steps on performing a hypothesis testing (5 step procedure). All the formula and calcuations are shown and explained. An excel output is also included.

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Test hypothesis, decision rule, value of test statistic

The mean income per person in the United States is $41,500, and the distribution of incomes follows a normal distribution. A random sample of 10 residents of Wilmington, Delaware, had a mean of $47,500 with a standard deviation of $10,600. At the .01 level of significance, is that enough evidence to conclude that residents of Wilmington, Delaware, have more income than the national average?
State the null hypothesis and the alternate hypothesis.

H0: ? â?¤
H1: ? >
State the decision rule for .01 significance level. (Round your answer to 3 decimal places.)

Reject H0 if t >
Compute the value of the test statistic. (Round your answer to 2 decimal places.)

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