Question

3. The U.S. Department of Agriculture claims that the mean cost of raising a child from birth to age 2 by husband-wife families in the U.S. is $13,120. A random sample of 500 children (age 2) has a mean cost of $12,925 . Assume the population standard deviation is $1745. Use a 0.02 significance level to test the claim.

For each question you need to find the following

1. a) < 1 point > Write the given .

Step 1

b) < 2 points > Write the claim and its opposite , then determine which is the null hypothesis and which is the alternative hypothesis.

c) < 0.5 point >Write the type of test you are going to use ( LT , RT , or 2 T )

d) < 0.5 point > what distribution you are going to use ( z or t )

Step 2

Use a graphing Calculator: Find the calculated test statistic and the P- Value

i) < 0.5 > what did you use to find the CTS :   Z- Test, T – Test , or 1-PropZtest ( choose one of them)

        ii ) < 2 >Write the value of the calculated test statistics :   C. T . S : ( choose z or t ) =   

        iii) < 1.5 point > P -value =

Step 3   Analyze

Traditional Method < 3 points> P-value Method. < 2 points >

For traditional , you need to Sketch the graph For P-value method, you need to do

Shade the required area P-value             α Need to write the value of each

label the critical value/s compare the values ( < or > )

Label the C.T.S                     

Step 4 : Write

1. i) < 1 point > Decision: (no credit if your answer is just reject or fail to reject only ; you need to write the complete expression)
2. ii) < 3 points > Conclusion ( fill in) : There ___________ enough evidence to _____________

                         the ______________ that _______________

Answer 1

Sample size is 500