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In: Economics

Suppose a ski resort bases revenue projections on the assumption that an average skier skis four...

Suppose a ski resort bases revenue projections on the assumption that an average skier skis four times per year. To evaluate the validity of this assumption, a random sample of 63 skiers is drawn and each is asked to report the number of times he or she skied last year. The sample average is 4.38 times. Assuming the population standard deviation is 2 times, can we infer at a 10% significance level that the resort’s assumption is wrong?

a) Set the null and alternative hypotheses.
b) Calculate a test statistic, select a rejection region, draw a conclusion, and interpret this conclusion.
c) Calculate a 90% confidence interval for the population mean.
d) Repeat the test in part (b) using the p-value method.

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Expert Solution

Rahul Sunny answered 1 year ago
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