According to HowtoAdvice.com, the average price charged to a customer to have a

12' by 18' wall-to-wall carpet shampoo cleaned is about $50. Suppose that a start-up

carpet-cleaning company believes that in the region in which they operate, the

average price for this service is higher. To test this hypothesis, the carpet-cleaning

company randomly contacts 23 customers who have recently had a 12' by 18'

wall-to-wall carpet shampoo cleaned and asked the customers how much they

were charged for the job. Suppose the resulting data are given below and that the

population standard deviation price is $3.49. Use a 10% level of significance to test

their hypothesis. Assume that such prices are normally distributed in the population.

What is the observed value? What is the p-value? What is the decision? If the null

hypothesis is rejected, is the result substantive?

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