A team of government researchers would like to determine whether a new tax on cigarettes has any effect on people’s smoking behavior. Specifically, they are expecting that by increasing the price of cigarettes, people’s will buy fewer packs of cigarettes (ultimately leading to decreases in cigarette smoking). During the year before the tax was imposed, stores located in rest areas on the state highways reported selling an average of µ = 410 packs per day. The distribution of daily sales was approximately normal. For a random sample of n = 25 days during the first year following the new tax, the researchers found an average of x̅= 380 packs per day for the same stores, with a standard deviation of s = 60. Is the sample mean sufficient to conclude that there was a significant decrease in cigarette purchases after the new tax? Use a one-tailed test with α = .01.
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A team of government researchers would like to determine whether a new tax on cigarettes has any effect on people’s smoking behavior. Specifically, they are expecting that by increasing the price of cigarettes, people’s will buy fewer packs of cigarettes (ultimately leading to decreases in cigarette smoking). During the year before the tax was imposed, stores located in rest areas on the state highways reported selling an average of µ = 410 packs per day. The distribution of daily sales was approximately normal. For a random sample of n = 25 days during the first year following the new tax, the researchers found an average of x̅= 380 packs per day for the same stores, with a standard deviation of s = 60.
Is the sample mean sufficient to conclude that there was a significant decrease in cigarette purchases after the new tax? Use a one-tailed test with α = .01.
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