The average expenditure per student for a certain school year was $10,550 with a population standard deviation of $1600. A survey for the next school year of 100 randomly selected students resulted in a sample mean of $11000. Do these results indicate that the average expenditure has changed? use α = 0.01 a/ state the hypothesis b/ find the critical value(s) c/ find the test value d/ make a decision e/ write the summary
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
The average expenditure per student for a certain school year was $10,550 with a population standard deviation of $1600. A survey for the next school year of 100 randomly selected students resulted in a sample mean of $11000. Do these results indicate that the average expenditure has changed?
use α = 0.01
a/ state the hypothesis
b/ find the critical value(s)
c/ find the test value
d/ make a decision
e/ write the summary
Given Information:
Hypothesized value of population mean = $10,550
Population standard deviation
Sample size
Sample mean
Significance level
(a) State the Hypothesis as follows:
Null Hypothesis i.e., average expenditure per student for a certain school year was $10,550
Alternative Hypothesis i.e., average expenditure per student for a certain school year has changed.
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