Question: A certain commodity is known to have a price that
A certain commodity is known to have a price that is stable through time and does not change according to any known trend. Price, however, does change from day to day in a random fashion. If the price is at a certain level one day, it is as likely to be at any level the next day within some probability bounds approximately given by a normal distribution. The mean daily price is believed to be $14.25. To test the hypothesis that the average price is $14.25 versus the alternative hypothesis that it is not $14.25, a random sample of 16 daily prices is collected. The results are x-bar = $16.50 and s = $5.8. Using α = 0.05, can you reject the null hypothesis?
Relevant QuestionsAverage total daily sales at a small food store are known to be $452.80. The store's management recently implemented some changes in displays of goods, order within aisles, and other changes, and it now wants to know whether ...According to Money, which not only looked at stocks (as in problem 7-20) but also compared them with real estate, the average appreciation for all real estate sold in the five years ending May 2007 was 12.4% per year. To ...According to Fortune, on February 27, 2007, the average stock in all U.S. exchanges fell by 3.3%. If a random sample of 120 stocks reveals a drop of 2.8% on that day and a standard deviation of 1.7%, are there grounds to ...An ad for flights to Palm Springs, California, claims that "the average temperature (in Fahrenheit) on Christmas Day in Palm Springs is 56º." Suppose you think this ad exaggerates the temperature upwards, and you look at a ...The engine of the Volvo model S70 T-5 is stated to provide 246 horsepower. To test this claim, believing it is too high, a competitor runs the engine n = 60 times, randomly chosen, and gets a sample mean of 239 horsepower ...
Post your question