Hypothesis testing for population mean

Reference no: EM1398973

Please use the five-step process for hypothesis testing

The director of Heating and Oil at Mitchell Brothers Company is concerned about the high cost of home heating oil being offered to their customers for the upcoming fall season in Boston. The company has no possibility of modifying the oil price under the current economic conditions. He believes that the company should offer a low cost maintenance contract to foster good will. The director decides to survey a sample of the surrounding towns to see what people are paying for similar home maintenance contracts. The telephone sample of 20 homes indicated that the customers are paying X (bar) = $165.4 and s = $22.20 for a yearly contract.

a. Using the 0.05 level of significance, is there evidence that the population mean is above $170?

b. What is your answer in (a) if s = $50 and the 0.10 level of significance is used?

c. What is your answer in (a) if X (bar) = $179.00 and s = $20.20?

Reference no: EM1398973

Questions Cloud

At what ph do you expect the enzymes to be most active : lysosomes are cell organelles that contain enzymes such as lipase in an acidic environment. I want to test the effect of pH on the activity of enzymes of enzymes extracted from the lysosomes.

Determine the best defense against payment : Pete, a Quality Company employee, is authorized to use Quality checks to buy supplies. Pete alters one of the checks to increase its $700 amount by $100, and exchanges it at Retail Office Supply for $700 worth of supplies and $100 cash.

Explain however some thought leaders voice complicate : Explain however some thought leaders voice that it could complicate the profession more. Below you will find out links to articles on this topic. Some support the change and some do not.

Determine the evolution of god given freedom of individua : Determine the evolution of the concept of "God given freedom of individual" stemming from Protestant Reformation and developing through American Enlightenment.

Hypothesis testing for population mean : Using the 0.05 level of significance, is there evidence that the population mean is above $170?

Which of the following would probably not involve the use : Which of the following would probably not involve the use of PERT? Planning and constructing a new city hall.

Question about probability theory : In a sample of 1,000 representing a survey from the entire population, 650 people were from Laketown, and the rest of the people were from River City.

Explain how closely to mimic the strategies of successful : n crafting a industry's strategy, management's biggest challenge is Explain how closely to mimic the strategies of successful companies in the industry. Managers have comparatively little freedom in choosing the "Explain how" of strategy.

Analysis of the present strategy employed by celestica : You are required to write an analysis of the present strategy employed by CELESTICA industry using the three "A" model proposed by Ghemawat.

User Account

All Pages