Required information [The following information applies to the questions displayed below.] A recent national survey found...

Required information

[The following information applies to the questions displayed below.]

A recent national survey found that high school students watched an average (mean) of 6.7 DVDs per month with a population standard deviation of 0.80 hour. The distribution of DVDs watched per month follows the normal distribution. A random sample of 40 college students revealed that the mean number of DVDs watched last month was 6.20. At the 0.05 significance level, can we conclude that college students watch fewer DVDs a month than high school students?

a.	State the null hypothesis and the alternate hypothesis.

Multiple Choice

H₀: μ ≤ 6.7 ; H₁: μ > 6.7
H₀: μ = 6.7 ; H₁: μ ≠ 6.7
H₀: μ > 6.7 ; H₁: μ = 6.7
H₀: μ ≥ 6.7 ; H₁: μ < 6.7

b.	State the decision rule.

Multiple Choice

Reject H₀ if z < -1.645
Reject H₁ if z > -1.645
Reject H₀ if z > -1.645
Reject H₁ if z < -1.645

c.	Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Value of the test statistic

d.	What is your decision regarding H₀?

Multiple Choice

Reject H₀
Cannot reject H₀

Solutions

Expert Solution

a) H0: μ ≥ 6.7 ; H1: μ < 6.7

b) Reject H0 if z < -1.645

c) population std dev ,    σ =    0.8000
Sample Size ,   n =    40
Sample Mean,    x̅ =   6.2000

'   '   '

Standard Error , SE = σ/√n =   0.8000   / √    40   =   0.1265
Z-test statistic= (x̅ - µ )/SE = (   6.200   -   6.7   ) /    0.1265   =   -3.95

Reject Ho

orchestra answered 11 months ago

Next > < Previous

Related Solutions

Required information [The following information applies to the questions displayed below.] The management of Niagra National...

Required information [The following information applies to the questions displayed below.] The management of Niagra National Bank is considering an investment in automatic teller machines. The machines would cost $156,400 and have a useful life of seven years. The bank’s controller has estimated that the automatic teller machines will save the bank $34,000 after taxes during each year of their life (including the depreciation tax shield). The machines will have no salvage value. Use Appendix A for your reference. (Use...

Required information [The following information applies to the questions displayed below.] The following are the transactions...

Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 45 $ 10 July 13 Purchase 225 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 170 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under LIFO. Assume a periodic inventory system is used. LIFO...

Required information [The following information applies to the questions displayed below.] The following are the transactions...

Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 54 $ 10 July 13 Purchase 270 12 July 25 Sold (100 ) $ 16 July 31 Ending Inventory 224 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under weighted average cost. Assume a periodic inventory system is...

Required information [The following information applies to the questions displayed below.] The following information is available...

Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 28,000 $ 52,000 Work in process 9,000 21,000 Finished goods 61,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 181,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 10,000 Indirect labor 46,000 Other overhead costs...

Required information [The following information applies to the questions displayed below.] The following information is available...

Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 46,000 $ 55,000 Work in process 9,000 19,600 Finished goods 62,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 183,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 11,000 Indirect labor 57,500 Other overhead costs...

A) Required information [The following information applies to the questions displayed below.] The following information pertains...

A) Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 400 units @ $ 30 Apr. 1 Purchased 2,000 units @ $ 35 Oct. 1 Purchased 600 units @ $ 38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change...

Required information [The following information applies to the questions displayed below.] The following information was reported...

Required information [The following information applies to the questions displayed below.] The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable $ 4,125 Accounts Receivable 710 Aircraft Fuel Expense 10,000 Cash 3,100 Common Stock 1,285 Dividends 20 Equipment 15,930 Income Tax Expense 320 Interest Expense 260 Landing Fees Expense 4,400 Notes Payable 7,015 Repairs and Maintenance Expense 2,500 Retained Earnings (as of December 31, 2017) 8,060 Salaries...

Required information [The following information applies to the questions displayed below.] The following information is available...

Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $25,752 debit balance, but its July bank statement shows a $27,446 cash balance. Check No. 3031 for $1,260 and Check No. 3040 for $622 were outstanding on the June 30 bank reconciliation. Check No. 3040...

Required information [The following information applies to the questions displayed below.] The following information is available...

Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $24,754 debit balance, but its July bank statement shows a $26,063 cash balance. Check No. 3031 for $1,110 and Check No. 3040 for $547 were outstanding on the June 30 bank reconciliation. Check No. 3040...

Question: Required information [The following information applies to the questions displayed below.] Fo... Required information [The...

Question: Required information [The following information applies to the questions displayed below.] Fo... Required information [The following information applies to the questions displayed below.] For many years, Yelena Company manufactured a single product called a Mono-Relay. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called a Bi-Relay that has become increasingly popular. The Bi-Relay is a more complex product, requiring 1.00 hour of direct labor time per...

Subjects