The cost of a daily newspaper varies from city to city. However, the variation among prices remains steady with a standard deviation of 6¢. A study was done to test the claim that the average cost of a daily newspaper is 35¢. Fourteen costs yield an average cost of 30¢ with a standard deviation of 4¢. Do the data support the claim at the 1% level?
The cost of a daily newspaper varies from city to city. However, the variation among prices remains steady with a standard deviation of 6¢. A study was done to test the claim that the average cost of a daily newspaper is 35¢. Fourteen costs yield an average cost of 30¢ with a standard deviation of 4¢. Do the data support the claim at the 1% level?
Note: If you are using a Student's t-distribution for the problem, you may assume that the underlying population is
State the distribution to use for the test
What is the test statistic
What is the p-value?
Construct a 95% confidence interval for the true
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