SOLUTION: The sales manager of a rental agency claims that the monthly maintenance fee for a condominium in the Lakewood region is $86. Past surveys showed that the standard deviation of the

Algebra ->  Probability-and-statistics -> SOLUTION: The sales manager of a rental agency claims that the monthly maintenance fee for a condominium in the Lakewood region is $86. Past surveys showed that the standard deviation of the      Log On


   

Question 463675: The sales manager of a rental agency claims that the monthly maintenance fee for a condominium in the Lakewood region is $86. Past surveys showed that the standard deviation of the population is $6. A sample of 15 owners shows that they pay an average of $84. Test the manager’s claim at α = 0.01. Find the 99% confidence interval of the mean. Does the confidence interval interpretation agree with the results of the hypothesis test? Explain. Assume that the variable is normally distributed.
Answer by edjones(8007) About Me  (Show Source):
You can put this solution on YOUR website!
H[o]:mu=86
s=6
.
n=15, m=84
.
t=%28m-mu%29%2F%28s%2Fsqrt%28n%29%29=%2884-86%29%2F%286%2Fsqrt%2815%29%29=-1.29
t [.005][14] = -2.977 two tailed
t[.01][14]=-2.64 one tailed
.
since t=-1.29>-2.977 and -2.64 then H[o] is not rejected. The manager's claim is accepted.
.
Ed