Question

In: Statistics and Probability

(3) Malls face increasing completion from Amazon. Last year the average consumer spent $50 at the...

(3) Malls face increasing completion from Amazon. Last year the average consumer spent $50 at the local mall. Is consumer spending decreasing? This year, in a random sample of shoppers, each was asked how much money she/he spent on the last trip to the local mall. Do they data support at a=10% significance level the research hypothesis that average shopper this year spent less that $50?

   a. What are the null and alternative hypotheses?

   b. What is the appropriate p-value?

   c. Can they infer at the 10% significance level that consumer spending decreased since last year? State your conclusion.

Consumer Spending
$       54.88
$       32.81
$       42.84
$       34.75
$       64.45
$       43.76
$       46.56
$       39.45
$       54.25
$       50.78
$       33.86
$       44.31
$       56.61
$       35.02
$       29.42
$       53.53
$       82.91
$       33.40
$       54.90
$       43.07
$       57.16
$       55.89
$       37.21
$       40.60
$       47.09
$       57.19
$       30.19
$       64.56
$       54.18
$       61.05
$       44.26
$       55.59
$       69.89
$       50.18
$       52.08
$       44.97
$       60.56
$       41.90
$       61.05
$       55.94
$       51.43
$       43.11
$       61.13
$       37.41
$       48.33
$       41.46
$       37.78
$       54.32
$       45.62
$       61.68
$       52.47
$       42.88
$       43.15
$       55.39
$       43.01
$       47.93
$       48.12
$       47.68
$       61.72
$       49.53
$       61.75
$       45.04
$       41.59
$       57.66
$       31.66
$       47.72
$       33.90
$       50.32
$       43.22
$       48.07
$       48.42
$       52.58
$       59.25
$       36.57
$       70.23
$       48.08
$       60.11
$       58.14
$       60.73
$       65.73
$       53.19
$       48.95
$       61.29
$       19.56
$       59.92
$       41.50
$       48.36
$       44.44
$       46.34
$       49.35
$       43.52
$       51.96
$       54.89
$       30.68
$       54.74
$       36.38
$       45.55
$       38.03
$       46.97
$       39.56
$       42.98
$       56.00
$       46.23
$       50.77
$       46.89
$       43.97
$       28.55
$       32.10
$       38.54
$       41.21
$       52.71
$       28.89
$       24.70
$       53.83
$       54.92

Solutions

Expert Solution

Values ( X )
54.88 46.6803
32.81 232.1875
42.84 27.1201
34.75 176.8288
64.45 269.0354
43.76 18.3844
46.56 2.2133
39.45 73.9204
54.25 38.4685
50.78 7.4655
33.86 201.2908
44.31 13.9704
56.61 73.313
35.02 169.721
29.42 346.9912
53.53 30.0556
82.91 1215.38
33.4 214.5551
54.9 46.954
43.07 24.7775
57.16 83.034
55.89 61.5017
37.21 117.4557
40.6 55.4682
47.09 0.9172
57.19 83.5816
30.19 318.8974
64.56 272.6561
54.18 37.6051
61.05 169.0598
44.26 14.3467
55.59 56.8863
69.89 477.0861
50.18 4.5467
52.08 16.2594
44.97 9.4722
60.56 156.5577
41.9 37.7942
61.05 169.0598
55.94 62.2884
51.43 11.44
43.11 24.3809
61.13 171.1466
37.41 113.1607
48.33 0.0797
41.46 43.3978
37.78 105.4257
54.32 39.3417
45.62 5.8937
61.68 185.8396
52.47 19.5567
42.88 26.7051
43.15 23.9875
55.39 53.9094
43.01 25.3784
47.93 0.0139
48.12 0.0052
47.68 0.1352
61.72 186.9318
49.53 2.1972
61.75 187.753
45.04 9.0463
41.59 41.7019
57.66 92.3963
31.66 268.5567
47.72 0.1074
33.9 200.1574
50.32 5.1633
43.22 23.3067
48.07 0.0005
48.42 0.1386
52.58 20.5417
59.25 125.4915
36.57 131.7376
70.23 492.0544
48.08 0.001
60.11 145.4991
58.14 101.8545
60.73 160.8407
65.73 312.6637
53.19 26.4432
48.95 0.8141
61.29 175.3585
19.56 811.5491
59.92 140.9515
41.5 42.8724
48.36 0.0975
44.44 13.0155
46.34 2.9162
49.35 1.696
43.52 20.5001
51.96 15.3061
54.89 46.8171
30.68 301.637
54.74 44.7869
36.38 136.1352
45.55 6.2385
38.03 100.3543
46.97 1.1614
39.56 72.0411
42.98 25.6816
56 63.2391
46.23 3.304
50.77 7.4109
46.89 1.3403
43.97 16.6276
28.55 380.1603
32.1 254.3291
38.54 90.3964
41.21 46.7541
52.71 21.737
28.89 367.0175
24.7 545.1151
53.83 33.435
54.92 47.2285
Total 5525.49 12656.1944

To Test :-

H0 :-

H1 :-  

Test Statistic :-

Test Criteria :-  

P value

Looking for the | t | = 1.987 across n - 1 = 115 - 1 degree of freedom

| t | lies between the values 1.984 and 2.364 repsective P value are 0.025 and 0.01.

Using excel to calculate the exact P value = 0.02466

Decision based on P value

Reject null hypothesis if P value < level of significance

0.02466 < 0.10, we reject null hypothesis

Part c)

Conclusion :- Accept Alternative Hypothesis

There is sufficient evidence to suppir tthe claim that average shopper this year spent less that $50.

orchestra answered 1 year ago
Next > < Previous

Related Solutions

Suppose consumers spent $42 million on Christmas trees last year, when the average tree cost was...
Suppose consumers spent $42 million on Christmas trees last year, when the average tree cost was $30. This year they spend $42 million, when the average tree costs $25. Assume that everything else remains constant. This data suggests that:​ Select one: a. ​the demand for trees is inelastic. b. ​total revenue to tree producers rose this year. c. ​consumers bought the same number of Christmas trees this year as last year. d. ​the price of the Christmas trees stayed the...
Do not take Amazon please The textbook authors explain that firms often face increasing costs as...
Do not take Amazon please The textbook authors explain that firms often face increasing costs as they increase production. However, some firms can achieve economies of scale, a situation where firms expand output with decreasing average total costs (Froeb, 2018). _______________________________________ 1. Identify a specific firm. Do not use a firm you already selected for a previous discussion assignment. Briefly describe the goods and/or services that are produced by the firm you selected. 2. Describe three strategies (no more and...
Edward Sayers has collected information showing that the average Amazon Prime customer spent $2,486 over the...
Edward Sayers has collected information showing that the average Amazon Prime customer spent $2,486 over the last twelve months compared to $544 for non-Prime Amazon customers. It is known that the amount spent by Amazon Prime customers is normally distributed, with a standard deviation of $125. What is the probability that an Amazon Prime customer spent more than $2,771 over the last twelve months? Use only the appropriate formula and/or statistical table in your textbook to answer this question. Report...
According to Consumer Response Annual Report, millennials spent an average of $103 on monthly dining in...
According to Consumer Response Annual Report, millennials spent an average of $103 on monthly dining in 2016. Let the amount spent on a monthly dining be normally distributed with unknown standard deviation. Assume that the probability of a randomly-selected millennial that spends more than $133 is 10%, and the probability that a randomly-selected millennial that spends less than $97 pounds is 40%. What is the probability that a randomly-selected millennial will spend between $73 and $109 on a monthly dining?
4. Here is the data from last semester on what people spent on their last meal....
4. Here is the data from last semester on what people spent on their last meal. 10.30   23.00   8.08     0.00     8.21     10.00   30.00   5.40     19.56   20.81   25.00   12.40   75.00   7.03     20.00   9.75     35.00   15.00   24.00   25.00   00.0            7.00     20.00   15.00   22.00   0.00     32.00   10.00   14.00   15.00   3.00     10.66   11.25   18.00   19.48   40.00   0.00     12.00   25.00   23.00   30.00            15.00 Construct a grouped frequency table. Use an interval number of 15. What information has this table allowed you to extract? What is the percentile rank of spending 30 dollars on a meal? What is the score at which 80% of the participants spent less than? What is the interquartile range for this data? (How do you find this?) What is the mean, median...
The average time spent playing one competitive game in Counter Strike is μ = 50 minutes...
The average time spent playing one competitive game in Counter Strike is μ = 50 minutes and standard deviation σ = 7 minutes. I didn’t believe it takes that long so I went ahead and played 100 competitive games for my sample and had an average time of 51 minutes. Use α = 0.05. Can I conclude that the average time spent playing competitive games in Counter Strike is any different that 50 minutes? You can use either Critical Value...
Last year, the mean dollar spent for online purchases on the AMAZING WEBSITE for the week...
Last year, the mean dollar spent for online purchases on the AMAZING WEBSITE for the week (7 days) before Labor Day among customers who use their Vista Charge Card was $350. The population standard deviation is not known. Because of increased use of on-line purchasing, Vista’s Vice President of Electronic Marketing believes that purchasing on the AMAZING WEBSITE has changed. He randomly selects 100 customer accounts. The results of the sample found that customers that used Vista charge card spent...
Last year, the mean dollar spent for online purchases on the AMAZING WEBSITE for the week...
Last year, the mean dollar spent for online purchases on the AMAZING WEBSITE for the week (7 days) before Labor Day among customers who use their Vista Charge Card was $350. The population standard deviation is not known. Because of increased use of on-line purchasing, Vista’s Vice President of Electronic Marketing believes that purchasing on the AMAZING WEBSITE has changed. He randomly selects 100 customer accounts. The results of the sample found that customers that used Vista charge card spent...
One year consumers spent an average of $23 on a meal at a restaurant. Assume that...
One year consumers spent an average of $23 on a meal at a restaurant. Assume that the amount spent on a restaurant meal is normally distributed and that the standard deviation is $6. Complete parts​ (a) through​ (c) below. a. What is the probability that a randomly selected person spent more than $28?=0.2033 P(X>$28)=0.2033 b. What is the probability that a randomly selected person spent between $9 and $21?=0.3608 P($9<X<$21)=0.3608 c. Between what two values will the middle 95% of...
One year consumers spent an average of $23 on a meal at a restaurant. Assume that...
One year consumers spent an average of $23 on a meal at a restaurant. Assume that the amount spent on a restaurant meal is normally distributed and that the standard deviation is $6. Complete parts​ (a) through​ (c) below. a. What is the probability that a randomly selected person spent more than $28?=0.2033 P(X>$28)=0.2033 b. What is the probability that a randomly selected person spent between $9 and $21?=0.3608 P($9<X<$21)=0.3608 c. Between what two values will the middle 95% of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT