WIll someone please explain step by step how to do this Than
WIll someone please explain step by step how to do this? Thank you
Customers at Costco spend an average of $130.00 per trip. One of Costco’s rivals would like to determine whether its customers spend ore per trip. A survey of the receipts of 25 customers found that the sample mean was $135.25. Assume that the population standard deviation is $10.50 and that spending follows a normal distribution Solve using the .05 significance level.
Solution
Set Up Hypothesis
Null Hypothesis H0: U=130
Alternate Hypothesis H1: U!=130
Test Statistic
Population Mean(U)=130
Given That X(Mean)=135.25
Standard Deviation(S.D)=10.5
Number (n)=25
we use Test Statistic (Z) = x-U/(s.d/Sqrt(n))
Zo=135.25-130/(10.5/Sqrt(25)
Zo =2.5
| Zo | =2.5
Critical Value
The Value of |Z | at LOS 0.05% is 1.96
We got |Zo| =2.5 & | Z | =1.96
Make Decision
Hence Value of | Zo | > | Z | and Here we Reject Ho
P-Value : Two Tailed ( double the one tail ) - Ha : ( P != 2.5 ) = 0.0124
Hence Value of P0.05 > 0.0124, Here we Reject Ho
