SOLUTION: #17 Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstore costs $ 53.12. You want to test this claim. The null and altern

Question 1120296: #17
Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstore costs $ 53.12. You want to test this claim.
The null and alternative hypothesis in symbols would be:
H0:μ=53.12 and H1:μ≠53.12
or
H0:p≤53.12 and H1:p>53.12
or
H0:μ≤53.12 and H1:μ>53.12
or
H0:μ≥53.12 and H1:μ<53.12
or
H0:p≥53.12 and H1:p<53.12
or
H0:p=53.12 and H1:p≠53.12

The null hypothesis in words would be:
The average of price of all textbooks from the store is less than $
53.12.
or
The average price of all textbooks from the store is $
53.12
or
The average of price of all textbooks from the store is greater than $
53.12.
or
The proportion of all textbooks from the store that are less than 53.12 is equal to 50%
or
The average price of textbooks in a sample is $53.12

Based on a sample of 100 textbooks at the store, you find an average of 51.32 and a standard deviation of 15.6.
The point estimate is:_____ (to 3 decimals)
The 99 % confidence interval (use z*) is:____ to _____(to 3 decimals)
Based on this we:
Reject the null hypothesis
or Fail to reject the null hypothesis

Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
For a, all hypotheses deal with parameters mu, not with samples.
This is worded as a 2-way test, so the answer is a.
The average price of textbooks in the store is $53.12

The point estimate is the sample result or $51.12
The interval is 2.626*s/sqrt(n), the 2.626 being the t-value for df=99, 0.995.
2.626*15.6/10=SE=4.097
The interval is the sample mean +/- SE
($47.023, $55.217)
Because $53.12 is in this interval, the true value may be what was quoted and fail to reject Ho at the 1% level.
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