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. subpart a) Calculate the 97% confidence interval for the population's 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. subpart b) State the null and the alternative hypothesis for this test. subpart c) Using the p-value approach, state the decision rule for this test. subpart d) Calculate the value of the test statistic for this test. subpart e) Calculate the p-value for this test? subpart f) State the conclusion of this test. Give a reason for your answer.
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.
subpart a) Calculate the 97% confidence interval for the population's 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.
subpart b) State the null and the alternative hypothesis for this test.
subpart c) Using the p-value approach, state the decision rule for this test.
subpart d) Calculate the value of the test statistic for this test.
subpart e) Calculate the p-value for this test?
subpart f) State the conclusion of this test. Give a reason for your answer.
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