Question 311584: A microwave oven repairer says that the mean repair cost of damaged microwave ovens is less than $110. You want to test this claim.You find that a random sample of five microwave ovens has a mean repair cost of $117 and a standard deviation of $12.50. With alpha at 0.01, do you have enough evidence to support the repairman's claim? Assume the population is normally distributed.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A microwave oven repairer says that the mean repair cost of damaged microwave ovens is less than $110.
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You want to test this claim.
You find that a random sample of five microwave ovens has a mean repair cost of $117 and a standard deviation of $12.50.
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With alpha at 0.01, do you have enough evidence to support the repairman's claim? Assume the population is normally distributed.
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Ho: u >= 110
Ha: u < 110 (claim)
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t(117) = (117-110)/[12.5/sqrt(5)] = 1.2522
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p-value = P(t < 1.2522 with df=4) = 0.8606
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Since the p-value is greater than 1%, fail to reject Ho.
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The test results do not support the claim.
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Cheers,
Stan H.
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