1. State the null and alternative hypothesis. Ho: Ha: 2. At 95% confidence level, what is the level of significance? 3. Determine what type of test to use and determine the critical value.
American Theatre owners knew that a certain hit movie ran an average of 84 days or more in each city, and the corresponding deviation is 10 days. The manager of the south-eastern district is interested in comparing the movies popularity in his region with that in all of American’s other theatres. He randomly chose 25 theatres in his region and found that they ran the movie on an average of 81.5 days. Test this claim at α = 0.05 level of significance.
1. State the null and alternative hypothesis.
Ho:
Ha:
2. At 95% confidence level, what is the level of significance?
3. Determine what type of test to use and determine the critical value.
4. Calculate the test statistic using the appropriate formula.
5 .Compare the calculated test statistics with that of the critical value.
6. Make a decision.
7. Interpret the result.
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