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Q1a) z-Test of a Single Population Mean

SOLUTION

Given

Sample mean: \bar{x} = 49.6

Hypothesized population mean: \mu_0 = 48

Population standard deviation: \sigma = 9

Sample size: n = 48

Hypotheses

Null Hypothesis

    \[H_0: \mu = 48 \]

(The average customer watches 48 hours or less of a sport channel per month.)

Alternative Hypothesis

    \[H_1: \mu > 48 \]

(The average customer watches more than 48 hours of a sport channel per month.)

Test Statistic

We use the formula for the z-test of one population mean:

    \[z = \frac{\bar{x} - \mu_0}{\sigma/\sqrt{n}}\]

    \[z = \frac{49.6 - 48}{9/\sqrt{48}}\]

    \[z = \frac{1.6}{1.3} \]

    \[z = 1.23\]

Rejection Region

Critical Value

For a significance level \alpha = 0.01, and since this is a right-tailed test (due to H_1: \mu > 48), we find the critical z-value from the z-table as z = 2.33.

Decision Rule

Reject the H_0 if z > z = 2.33

Conclusion

Since the calculated z-value of z = 1.23 is not greater than the critical z-value of z = 2.33, we do not reject the H_0

Therefore, at the 1% significance level, we do not have sufficient evidence to conclude that the average customer watches more than 48 hours of a sport channel per month.

This means that the claim by the Advance cable network that the average customer watches 48 hours or less per month stands.

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