According to a recent article in USA Today, Americans spend $484 per year on alcoholic beverages. As a market research firm for a local wine distributor, you have accessed data on a random sample of 150 Boston residents to see if their spending is higher than average, and perhaps a good area for your client to make a local investment. The average spending in the sample is $404, with a standard deviation of $102. Does this represent a significant difference? Determine this using a 95% confidence level.

Given that, The hypothesized mean μ0=484 The sample size n=150 The sample mean x¯=404 The sample…

Answered: According to a recent article in USA…

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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According to a recent article in USA Today, Americans spend $484 per year on alcoholic beverages. As a market research firm for a local wine distributor, you have accessed data on a random sample of 150 Boston residents to see if their spending is higher than average, and perhaps a good area for your client to make a local investment. The average spending in the sample is $404, with a standard deviation of $102. Does this represent a significant difference? Determine this using a 95% confidence level.

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