Q&A: Statistics Question! Help please!?
Question by Sara: Statistics Question! Help please!?
Last year, the average cost of making a movie was $ 54.8 million. This year, a random sample of 15 recent action movies had an average production cost of $ 62.3 million with a standard deviation of 9.5 million. Can it be concluded that the average cost of produce an action movie is higher than the movie industry average of $ 54.8 million? (Assume the cost of producing movies is normally distributed).
Claim:
Opp.:
Ho:
H1:
What is the Critical Value?
What is the value of the test statistic?
What is the P-Value?
What is your Conclusion? a) Reject the Ho or b) fail to reject the Ho
Best answer:
Answer by Steve Spencer
Although I can give you the answer, this will not help you in the long run. Review the steps for the hypothesis testing procedure (mean compared to a hypothesized value):
Define the population of interest.
State the null and alternate hypotheses.
Determine the significance level & the rejection region.
Apply the formula t = (x – m) / (s / square root n)
Use Excel to identify the p-value.
Make a decision based on the p-value: If the p-value is low, the null must go (if the p-value is less than alpha, reject the null hypothesis).
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