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Throughout the 1990's the average household expenditure on scratch tickets in a state has been $5. In 2010, a sample of 7 households was selected at random and the following expenditures for a given week were reported:
$3, $2, $4, $3, $5, $4, $7
(a) What is the sample mean expenditure for scratch tickets?
(b) What is the sample standard deviation for the sample results?
(c) What are the null and alternate hypotheses if we wished to test the hypothesis that the average expenditure on scratch tickets has decreased in the 21stcentury?
(d) What is the critical score which will determine your conclusion?
(e) What is the computed score found from the sample data and what is your conclusion based on these results?
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