1. The appropriate null hypothesis for testing the profitability of the new design sets μ0 = +80.
2. The appropriate null hypothesis for testing the profitability of the new design is H0: μ ≤ μ0.
3. If the a-level of the test is α = 0.05, then there is at most a 5% chance of incorrectly rejecting H0.
4. If the p-value of the test of H0 is less than a, then the test has produced a Type II error.
5. If the test used by the retailer rejects H0 with the α-level set to α = 0.05, then it would also reject H0 with α = 0.01.
6. The larger the sample size used to evaluate the new design, the larger the chance for a Type II error.
7. If the standard deviation is estimated from the data, then a z-statistic determines the p-value.
8. If the t-statistic rejects H0, then we would also reject H0 had we obtained the p-value using a normal distribution rather than a t-distribution.
A retailer maintains a Web site that it uses to attract shoppers. The average purchase amount is $80. The retailer is evaluating a new Web site that would, it hopes, encourage shoppers to spend more. Let m represent the average amount spent per customer at its redesigned Web site.