SOLUTION: Solve completely: t - test A. Setup the null and alternate hypothesis B. What is the level of significance “a” (alpha)? What test will you use and how many tails is it?

Click here to see ALL problems on Finance

Question 1175860: Solve completely: t - test
A. Setup the null and alternate hypothesis
B. What is the level of significance “a” (alpha)? What test will you use and how many tails is it?
C. Find the Critical Value given the level of significance and the number of tails (and the given n if it is a t-test).
D. Write the Decision Rule given the Critical Value. Note: A two-tailed test will have a positive and a negative Critical Value.
E. Solve for the test statistic (z-value). Compare with the Critical Value.
F. Conclusion: Reject or Do Not Reject? Explain in terms of the decision rule.
1.) The Rocky Mountain district sales manager of Rath Publishing Inc., a college textbook publishing company, claims that the sales representative make an average of 40 sales calls per week. Several reps manager say that this estimate is too low. To investigate, a random sample of 28 sales representatives reveals that the mean number of calls per salesperson per week was 42. The sample standard deviation is 2.1 calls. Using the 0.05 significance level, can we conclude that the mean number of calls per salesperson per week is different from 40?

Answer by ewatrrr(24785) (Show Source):
You can put this solution on YOUR website!

Hi Population: μ = 40 Sample: n = 28 and x̄ = 42 and s = 2.1 Ho: μ = 40 Ha μ ≠ 40 1)Level of significance is .05 2) Two-tailed 3) Sample 28, population σ Unknown: use t-test 4) critical value- df27 : t = 2.05 4) t= 2/(2.1/√28) = 5.04 t value > critical value Reject Ho. Evidence shows that the mean number of calls per salesperson per week is different from 40. Wish You the Best in your Studies.