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Question: An advertisement for a popular weight loss clinic suggests that participants in its new diet program lose, on average, more than 10 pounds. A consumer activist decides to test the authenticity of the claim. She follows the progress of 18 women who recently joined the weight reduction program. She calculates the mean weight loss of these participants as 10.8 pounds with a standard deviation of 2.4 pounds.
a. Set up the competing hypotheses to test the advertisement claim.
b. Calculate the value of the appropriate test statistic.
c. At the 5% significance level, what is the critical value(s)? Specify the decision rule.
d. What does the consumer activist conclude?
After reading the ad and then examining the car, O'Brien told a Lee Calan Imports salesman that he wanted to purchase the car for the advertised price of $1,095. Calan Imports refuses to sell the car to O'Brien for $1,095. Is there a contract? If ..
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