The manager of the marketing division of Acme Corporation forecasts an average monthly sales in 1978 of
Question:
The manager of the marketing division of Acme Corporation forecasts an average monthly sales in 1978 of $65,000. In the first seven months of 1978, the average monthly sales were $63,200, with a standard deviation of $500. The management wishes to test the hypothesis Ho that "statistically" the manager was right (Ho: ì = 65,000) against the alternative hypothesis that he was wrong in his forecast (H1: ì ≠ 65,000), using a two-tail test. Assuming normal distribution of monthly sales, which of the following statements is true?
Hint - Calculate Z statistics with given information and compare with critical value for 5% (1%) significance level
None of the options.
Ho is rejected at the 5 percent significance level but accepted at the 1 percent significance level.
Ho is rejected at both the 5 percent and 1 percent significance levels.
Ho is accepted at both the 5 percent and 1 percent significance levels.
Ho is accepted at the 5 percent significance level but rejected at the 1 percent significance level.
Fundamentals Of Electric Circuits
ISBN: 9780073301150
3rd Edition
Authors: Matthew Sadiku, Charles Alexander