In an analysis investigating the usefulness of pennies the cents
In an analysis investigating the usefulness of pennies, the cents portions of 100 randomly selected credit card charges from the author are recorded, and they have a mean of 47.6 cents and a standard deviation of 33.5 cents. If the amounts from 0 cents to 99 cents are all equally likely, the mean is expected to be 49.5 cents and the population standard deviation is expected to be 28.866 cents. Use a 0.01 significance level to test the claim that the sample is from a population with a standard deviation equal to 28.866 cents. If the amounts from 0 cents to 99 cents are all equally likely, is the requirement of a normal distribution satisfied? If not, how does that affect the conclusion?
Identify the null hypothesis, alternative hypothesis, test statistic, P-value or critical value(s), conclusion about the null hypothesis, and final conclusion that addresses the original claim. Assume that a simple random sample is selected from a normally distributed population.
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