During a recent year the average cost of making a movie was $54.8 million. This year, a random sample of 15 recent action movies had an average production cost of $62.3 million with a variance of $90.25 million. At the 0.05 level of significance, can it be concluded that it costs more than average to produce an action movie?
Perform each of the following steps.
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Find the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.
Assume that the population is approximately normally distributed.