document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=324572>Question 324572</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An ice cream store estimates that the mean consumption of their waffle cones by their customers is more than 3 per year. In a sample of 80 customers, you find that the mean consumption of waffle cones is 4 per year with a standard deviation of 5.0. Let the level of significance be &#945; = 0.06.<BR>\n" );
document.write( " <BR>\n" );
document.write( "Decide whether to reject the null hypothesis or fail to reject the null hypothesis. Also interpret the decision in terms of the original claim. Choose two answers below.  <BR>\n" );
document.write( " <BR>\n" );
document.write( " answers<BR>\n" );
document.write( "A.Fail to reject the null hypothesis <BR>\n" );
document.write( "B.Reject the null hypothesis <BR>\n" );
document.write( "C.At the &#945; = 0.06 level, there is enough evidence to support the ice cream store’s claim. <BR>\n" );
document.write( "D. At the &#945; = 0.06 level, there is not enough evidence to support the ice cream store’s claim. <BR>\n" );
document.write( " <BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #237417 by </B><A HREF=/tutors/aboutme.mpl?userid=jrfrunner><B>jrfrunner(365)</B></A><img src=\"/images/stars/stars-10.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jrfrunner><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=jrfrunner><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=237417\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Ho: Mu=3<BR>\n" );
document.write( "Ha: Mu not equal 3  (the claim)\r<BR>\n" );
document.write( "\n" );
document.write( "given n=80, xbar=4, s=5  alpha =0.06\r<BR>\n" );
document.write( "\n" );
document.write( "Since sigma is not known, the test statistic used would be a t, but since the sample size is large, either Z or t statistic could be used.\r<BR>\n" );
document.write( "\n" );
document.write( "Furthermore, since analysis is on the means \"and\" sample size is large, the normality assumption is acceptable.\r<BR>\n" );
document.write( "\n" );
document.write( "test statistic:  Z=(Xbar - Mu)/SE  where SE = s/sqrt(n)<BR>\n" );
document.write( "                  Z = (4-3)/(5/sqrt(80))=1.7888\r<BR>\n" );
document.write( "\n" );
document.write( "This is a two tail test, so the critical values for alpha=.06 are -1.88, 1.88<BR>\n" );
document.write( "The region between these two critical values is the \"cannot reject\" region<BR>\n" );
document.write( "Since the test statistic falls in this region we conclude \"cannot reject Ho, no evidence that Mu is not equal to 3\" in other words fail to reject Ho.\r<BR>\n" );
document.write( "\n" );
document.write( "in your list of choices:  A & D </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );