SOLUTION: {{{The program office budgets $30,000 per program review at the contractor’s site. Your concern for “end of year” spending drills is that you have budgeted enough for the reviews (
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-> SOLUTION: {{{The program office budgets $30,000 per program review at the contractor’s site. Your concern for “end of year” spending drills is that you have budgeted enough for the reviews (
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You can put this solution on YOUR website! H0: µ = 30,000
H1: µ > 30,000
α = 0.2
C.V = Z1- α = Z1-0.2 = Z0.8 = 0.84 (table value)
Z =((( Ῡ-µ))⁄√n)/σ
Decision rule: Reject H0 if /Zcal/ is greater than /Ztab/, otherwise do not reject.
Ῡ = 32,000
σ = 3,500
µ = 30,000
n = 16
Zcal =((( Ῡ-µ))⁄√n)/σ
Zcal =(((32000-30000))⁄√16)/3500
Zcal =(((32000-30000))⁄√16)/3500
Zcal =(((2000))⁄4)/3500
Zcal =500/3500
Zcal = 0.143 Ztab = 0.84
Decision: since Ztab > Zcal we retained H0 and conclude that the budgeted amount is 30,000 at 80% level of significance.
