SOLUTION: #17 Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstore costs $ 71.84. You want to test this claim. The null and altern

Question 1120130: #17
Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstore costs $ 71.84. You want to test this claim.
The null and alternative hypothesis in symbols would be:
H0:p≥71.84 and H1:p<71.84
or
H0:p≤71.84 and H1:p>71.84
or
H0:μ=71.84 and H1:μ≠71.84
or
H0:μ≤71.84 and H1:μ>71.84
or
H0:p=71.84 and H1:p≠71.84
or
H0:μ≥71.84 and H1:μ<71.84
The null hypothesis in words would be:
The average of price of all textbooks from the store is less than $
71.84.
or
The average of price of all textbooks from the store is greater than $
71.84.
or
The proportion of all textbooks from the store that are less than 71.84 is equal to 50%
or
The average price of all textbooks from the store is $
71.84
or
The average price of textbooks in a sample is $71.84
Based on a sample of 180 textbooks at the store, you find an average of 80.24 and a standard deviation of 22.6.
The point estimate is:____ (to 3 decimals)
The 90 % confidence interval (use z*) is:____ to _____(to 3 decimals)
Based on this we:
Fail to reject the null hypothesis
or Reject the null hypothesis

Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Hypothesis statements are always about parameters, not samples
Ho: mu=$71.84
Ha: mu NE $71.84
The point estimate is the sample mean or $80.240
90% CI has interval t (df=179, 0.95)s/sqrt (n)
-1.649*22.6/sqrt(180) is interval width or 2.778
The interval is ($77.462, $83.018)
Since $71.84 is not in the interval, we reject Ho and conclude the average price is not $71.84

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