document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1105766>Question 1105766</A>: <I><SPAN STYLE=\"word-break: break-all;\"> (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?<BR>\n" );
document.write( "(b) Identify the sampling distribution you will us: the standard normal or Student’s t. Explain the rationale for your choice. What is the value of the sample test statistic?<BR>\n" );
document.write( "(c) Find (or estimate) the P &#8722; value. Sketch the sampling distribution and show the area corre- sponding to the P &#8722; value.<BR>\n" );
document.write( "(d) Find the critical value(s).<BR>\n" );
document.write( "(e) Based on your answers for parts (a) to (d), will you reject or fail to reject the null hypothesis? Interpret your decision in the context of the application.<BR>\n" );
document.write( "36. A night club change ownership. Before the change the average sales used to be $24’952 a day with a standard deviation &#963; = $1904. A random sample of 38 days under the new management gave a sample mean daily average of $25’894 a day. Does this indicate that the population mean daily sales are now more than they used to under old management? Use a 1% level of significance. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #721365 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=721365\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Level of significance is 0.01.  <BR>\n" );
document.write( "Ho=no change<BR>\n" );
document.write( "Ha:there is some change from the previous value<BR>\n" );
document.write( "I would use a two-tailed test because it's not clear which way the change is gone, and a two-tailed test is more conservative.<BR>\n" );
document.write( "use a z-test, because sigma is known, and critical value is |z(0.995)|> 2.576<BR>\n" );
document.write( "z=(change in mean)/sigma/sqrt(n)<BR>\n" );
document.write( "=942*sqrt(38)/1904=3.05<BR>\n" );
document.write( "This is greater than the critical value, so there is strong evidence at the 1% level that there is a difference. There has been a significant increase in the average sales and they are now more than they used to be.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );