Question

School boards in Nova Scotia, on average receive a budget of $623.00 per student from the provincial government. A random sample of 45 rural schools report that they received on average $605 per student with a standard deviation of $74. Is there a significant difference in the budgets between rural schools and the whole province

Answer 1

Given that ,

n = 45

Since sample size is greater than 30 and Standard deviation is given hence we used Z test .

Here , We want to test ,

.....There is no significant difference in budget between rural schools and the whole province .

v/s

......There is significant difference in budget between rural schools and the whole province .

Test statistic is ,

Table value :

Decision Rule : If then we reject at 5% level of significance .

Here ,

And

Decision : Here , , Hence we cannot reject at 5% level of significance .

Conclusion : There is no significant difference in budget between rural schools and the whole province .