David Ricardo of Iron Law, Inc. claims that he meets the company standard of spending an average of “no more than $ 8 a day” on business lunches. As company auditor, you take a random sample of 12 of David’s recent lunch receipts and find that the average lunch check for the sample was $ 11.04, with a sample standard deviation of $ 3.40. Assume that the population of David’s lunch check amounts is normal. Using as the null hypothesis the proposition that David meets the company standard, and with a significance level of 1%, conduct the appropriate hypothesis test and report your results.
Answer to relevant QuestionsRefer to Exercise 72. Suppose sample size was 36 rather than 12. Show the test and report your decision. In exercise David Ricardo of Iron Law, Inc. claims that he meets the company standard of spending an average of “no ...Lucas Lopez is auditing ABC Corporation’s accounts receivable. There are 5000 accounts in all. ABC shows a total book value of $ 2,840,000 for accounts receivable. Lucas takes a simple random sample of 100 of the 5000 ...Refer to exercise 82, where you had set up a test to test the competing positions H0: μ > 800 minutes Ha: μ < 800 minutes Suppose now you want to set up a new test for this situation. In this new test, you plan to use a ...The large shipments of “Mix RW” balloons sold by Thibodaux Wholesale Party Supply are supposed to contain equal numbers of red and white balloons. Before a shipment is sent off, a quality control inspector takes a random ...The Boulder Fire Department conducted a study of average emergency response times for its two stations. For a sample of 125 emergency responses by the North Boulder Station, average response time was 16.2 minutes. For a ...
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