Executives at Gammon & Ninowski Media Investments, a top television station brokerage, believe that the current average price for an independent television station in the United States is $125 million. An analyst at the firm wants to check whether the executives' claim is true. The analyst has no prior suspicion that the claim is incorrect in any particular direction and collects a random sample of 25 independent TV stations around the country. The results are (in millions of dollars) 233, 128, 305, 57, 89, 45, 33, 190, 21, 322, 97, 103, 132, 200, 50, 48, 312, 252, 82, 212, 165, 134, 178, 212, 199. Test the hypothesis that the average station price nationwide is $125 million versus the alternative that it is not $125 million. Use a significance level of your choice.
Answer to relevant QuestionsMicrosoft Corporation makes software packages for use in microcomputers. The company believes that if at least 25% of present owners of microcomputers of certain types would be interested in a particular new software ...According to The Economist, investors in Porsche are the dominant group within the larger VW Company that now owns the sports car maker. Let's take dominance to mean 50% ownership, and suppose that a random sample of 700 VW ...If you look at the power curve or the OC curve of a two-tailed test, you see that there is no region that represents instances of type I error, whereas there are large regions that represent instances of type II error. Does ...A fashion industry analyst wants to prove that models featuring Liz Claiborne clothing earn on average more than models featuring clothes designed by Calvin Klein. For a given period of time, a random sample of 32 Liz ...Air Transport World recently named the Dutch airline KLM "Airline of the Year." One measure of the airline's excellent management is its research effort in developing new routes and improving service on existing routes. The ...
Post your question