Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstorecosts $$ 82.37. You want to test this claim.

Elements Of Modern Algebra
8th Edition
ISBN:9781285463230
Author:Gilbert, Linda, Jimmie
Publisher:Gilbert, Linda, Jimmie
Chapter2: The Integers
Section2.7: Introduction To Coding Theory (optional)
Problem 7E
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Suppose that BC financial aid alots a textbook stipend by claiming that the average textbook at BC bookstorecosts $$ 82.37. You want to test this claim.

The null and alternative hypothesis in symbols would be:

  • H0:p≤82.37H0:p≤82.37
    H1:p>82.37H1:p>82.37
  • H0:p≥82.37H0:p≥82.37
    H1:p<82.37H1:p<82.37
  • H0:μ≤82.37H0:μ≤82.37
    H1:μ>82.37H1:μ>82.37
  • H0:μ≥82.37H0:μ≥82.37
    H1:μ<82.37H1:μ<82.37
  • H0:μ=82.37H0:μ=82.37
    H1:μ≠82.37H1:μ≠82.37
  • H0:p=82.37H0:p=82.37
    H1:p≠82.37H1:p≠82.37

The null hypothesis in words would be:

a) The average price of all textbooks from the store is $$ 82.37

b) The proportion of all textbooks from the store that are less than 82.37 is equal to 50%

c) The average of price of all textbooks from the store is greater than $ 82.37.

d) The average price of textbooks in a sample is $$ 82.37

e) The average of price of all textbooks from the store is less than $$ 82.37.


Based on a sample of 80 textbooks at the store, you find an average of 92.17 and a standard deviation of 24.

The point estimate is:  (to 3 decimals)

The 90 % confidence interval (use z*) is:  to  (to 3 decimals)

Based on this we:

a) Reject the null hypothesis

b) Fail to reject the null hypothesis

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