Question

The average cost of a speeding ticket plus court fees is reported to be $150. A random sample of 38 speeding ticket court cases showed that the mean cost was $152.59. At the 0.01 level of significance, is that greater than $150? The population standard deviation is $10.78.Solve this hypothesis testing problem by finishing the five steps.Step 1: We are testing whether the mean speeding ticket cost is greater than $150. This claim can be written as

Answer 1

SOLUTION;

Concept Hypothesis Testing

The first step in hypothesis testing is to state

$\begin{gathered} \text{Null hypothesis} \\ \text{Alternative hypothesis} \end{gathered}$

In this case,

The Null hypothesis is

$H_0\colon\text{ }\mu=150$

The Alternative Hypothesis is

$_{}H_1;\mu>\text{ 150}$