The number of destination weddings has skyrocketed in recent years. For example, many couples are opting to have their weddings in the Carribean. A recent advertisement recently stated that the cost of a Carribean wedding was less that $30,000. Here is a sample of 8 weddings ($28,500) ($29,500) ($29,900) ($30,200) ($29,200) ($30,400) ($29,000) ($28,900). At the 0.05 significance level, is it reasonable to conclude the mean wedding cost is less than $30,000 as advertised? State the null and alternative hypothesis. Use a 0.05 level of significance (round to 3 decimal places). State the decision rule for 0.05 significance level (round to 3 decimal places). Compute the value of the test statistic (round to 3 decimal places).
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The number of destination weddings has skyrocketed in recent years. For example, many couples are opting to have their weddings in the Carribean. A recent advertisement recently stated that the cost of a Carribean wedding was less that $30,000. Here is a sample of 8 weddings ($28,500) ($29,500) ($29,900) ($30,200) ($29,200) ($30,400) ($29,000) ($28,900). At the 0.05 significance level, is it reasonable to conclude the mean wedding cost is less than $30,000 as advertised?
- State the null and alternative hypothesis. Use a 0.05 level of significance (round to 3 decimal places).
- State the decision rule for 0.05 significance level (round to 3 decimal places).
- Compute the value of the test statistic (round to 3 decimal places).
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