SOLUTION: The R.R Bowker Company collects information on the retail prices of books and publishes its findings in The Bowker Annual Library and Book Trade Almanac. In 2005, the mean retail p

Question 1205339: The R.R Bowker Company collects information on the retail prices of books and publishes its findings in The Bowker Annual Library and Book Trade Almanac. In 2005, the mean retail price of all history books was $78.01. this year’s retail prices for 40 randomly selected history books are shown in the table below.
82.55 74.43 73.58 77.50 74.25 77.45 83.99 69.26
72.80 81.37 89.23 77.83 82.71 90.29 80.64 80.31
73.89 82.28 74.35 77.49 78.88 79.42 101.92 98.72
80.54 77.55 77.44 87.25 78.25 67.63 83.03 87.81
80.26 88.25 78.91 98.93 80.35 91.48 95.59 69.20
At the 1% significance level, do the data provide sufficient evidence to conclude that this year’s mean retail price of all history books has increased from the 2005 mean of $78.01? Assume that the population standard deviation of prices for this year’s history books is $7.61.
A. State null hypothesis.
B. State alternative hypothesis
C. Level of significance
D. Test statistic E. Decision rule based on p-value F. Statistical decision
G. Conclusion
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
a one sample t-test was performed using the calculator at https://www.statskingdom.com/130MeanT1.html

the results are shown below:

population mean was 78.01
the sample mean was 81.4402
the sample standard deviation was 8.093058
the sample size was 40
the sample degrees of freedom was 39
the standard error was equal to the standard deviation / sqrt(sample size = 8.093058 / sqrt(40) = 1.2796
the test t-score was 2.6807
the test p-value was .005355
the critical t-score at 99% right tail confidence interval was 2.4258.
the critical p-value was .01
the test t-score was greater than the critical t-score and the test p-value was less than the critical p-value.
this indicated that the difference between the sample mean and the population mean was significant, leading to the conclusion that this year's mean price of books had increased from the mean price in 2005.

the red part of the graph showed the tail on the right end of the confidence interval. that's the area to the right of the distribution graph that is not part of the confidence interval.

RELATED QUESTIONS
The R. R. Bowker Company collects information on the retail prices of books and publishes (answered by ewatrrr)

The U.S. National Center for Health Statistics collects data on cigarette smokers by sex... (answered by stanbon)

A telephone company in a town has 1000 subscribers on its list and collects a fixed... (answered by stanbon)

(Revenue) The John Deere company has found that the revenue from sales of heavy-duty... (answered by stanbon)

The car company has found that the revenue from sales of sedans is a function of the unit (answered by Alex.33,ikleyn)

A company that sells pocket radios makes a profit of R 12 000 on the first 500 radios... (answered by Theo,MathTherapy)

A telephone company in a town has 500 subscribers on its list and collects fixed charges... (answered by Theo)

A rational number is defined as the quotient of two integers. When written as a decimal,... (answered by greenestamps)

A bed and breakfast collects $75 a room rented. Write a function that relates the... (answered by josmiceli)