Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to determine whether this claim is true. The auditor randomly selected a sample of 100 days and found that the sample mean earnings was $495 with a sample standard deviation of 9.75. Calculate the 97% confidence interval for the population mean daily earning. Assist the auditor in conducting a hypothesis test, at the 3% level of significance, to determine whether the claim about their average daily earnings was overstated. State the null and the alternative hypothesis for this test. Using the p-value approach, state the decision rule for this Calculate the value of the test statistic for this test. Calculate the p-value for this test? State the conclusion of this test. Give reason for your
Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to determine whether this claim is true. The auditor randomly selected a sample of 100 days and found that the sample mean earnings was $495 with a sample standard deviation of 9.75. Calculate the 97% confidence interval for the population mean daily earning. Assist the auditor in conducting a hypothesis test, at the 3% level of significance, to determine whether the claim about their average daily earnings was overstated. State the null and the alternative hypothesis for this test. Using the p-value approach, state the decision rule for this Calculate the value of the test statistic for this test. Calculate the p-value for this test? State the conclusion of this test. Give reason for your
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to determine whether this claim is true. The auditor randomly selected a sample of 100
days and found that the sample mean earnings was $495 with a sample standard deviation of 9.75.
- Calculate the 97% confidence interval for the population mean daily earning.
Assist the auditor in conducting a hypothesis test, at the 3% level of significance, to determine whether the claim about their average daily earnings was overstated.
- State the null and the alternative hypothesis for this test.
- Using the p-value approach, state the decision rule for this
- Calculate the value of the test statistic for this test.
- Calculate the p-value for this test?
- State the conclusion of this test. Give reason for your
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