As part of their investigation of the utility in Problem 1, the television station believed that the average customer bill was more than $320. Using the sample of 65 described in Problem 1 with mean $335 and sample standard deviation $95, is there evidence to back up the station's suspicions? Test the appropriate claim at the 0.05 level of significance by doing the following. ( problem 1)As part of an investigation on accusations of overcharging the customers of a utility in a major city, a television station sampled 65 bills. The mean utility bill of the sample is $335 with a sample standard deviation of $95. Use this information to construct a 98% confidence interval for the mean customer bill for this utility by doing the following: a) Formulate the claim b) Calculate the test statistic. c) Find the p-value d) Formulate the conclusion statistically. e) Formulate the conclusion practically
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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