Please include all the work (how you did it), so I can understand it. Thanks! Ho

Question

Please include all the work (how you did it), so I can understand it. Thanks!

Hoping to lure more shoppers downtown, a city builds a new public parking garage in the central business district. They city plans to pay for the structure through parking fees. During a two-month period (44 weekdays), daily fees collected averaged $126, with a sample standard deviation of $15. Assuming the daily fees are Normally distributed, use a 5% level of significance to test the claim that the fees differ from an average of $130 per day (the amount proposed by the consultant on the project) a. State the null and alternative hypotheses H_0: H_1: b. What calculator test will you use? List the requirements that must be met to use this test, and indicate whether the conditions are met in this problem. c. Run the calculator test and obtain the P-value. d. Based on your P-value, will you reject or fail to reject the null hypothesis? e. Interpret your conclusion from part d in the context of this problem.

Explanation / Answer

a)

H0 : mu = 130
H1 : mu not equal to 130

b)
n = 44 , x= 126 , s = 15

t = ( x - mu) / ( s / sqrt(n))
= ( 126 - 130) /( 15 / sqrt(44))
= -1.7688

If the assumptions are correct and is true, the test statistic follows the standard normal distribution. Therefore, we calculate a t score and use it to test the hypothesis.

Reject H0 if the z value falls in the rejection region. Fail to reject H0 if it falls in the nonrejection region.

The structure of it is a two tail test. Therefore, reject if z -1.96 or z 1.96.

c)

P value is calculated using t = -1.7688 , df = 43

P value = .084156.

d)

we fail to reject the null hypothesis

e)

Here, the fees are not differ from an average 130 per day at 5% significance levl

c)

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