CNN money reports that the average cost of a speeding ticket, including court costs, was $150 in 2002. A local police department claims that this amount has increased. To test their claim, they collect data from 140 drivers who have been fined in the last year and find that they paid an average of $153.50 per ticket with a population standard deviation of $15. Is there evidence to support the police department’s claim at the 0.01 level of significance? (a) State the null and alternative hypotheses (b) Find the value of your test statistic. Draw a picture and label its location on the normal curve. Also shade the area where you will find the p-value. (c) Calculate the p-value from the sample data. Compare it to the significance level. Label it’s value and location on your bell curve (d) full conclusion based on the above results
CNN money reports that the average cost of a speeding ticket, including court costs, was $150 in 2002. A local police department claims that this amount has increased. To test their claim, they collect data from 140 drivers who have been fined in the last year and find that they paid an average of $153.50 per ticket with a population standard deviation of $15. Is there evidence to support the police department’s claim at the 0.01 level of significance?
(a) State the null and alternative hypotheses
(b) Find the value of your test statistic. Draw a picture and label its location on the normal curve. Also shade the area where you will find the p-value.
(c) Calculate the p-value from the sample data. Compare it to the significance level. Label it’s value and location on your bell curve
(d) full conclusion based on the above results
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