## Related questions with answers

For the United States, the mean monthly Internet bill is $\$32.79$ per household (CNBC, January 18, 2006). A sample of 50 households in a southern state showed a sample mean of $\$30.63$. Use a population standard deviation of $\sigma$ = $\$5.60$.

a. Formulate hypotheses for a test to determine whether the sample data support the conclusion that the mean monthly Internet bill in the southern state is less than the national mean of $\$32.79$.

b. What is the value of the test statistic?

c. What is the p-value?

d. At $\alpha$= .01, what is your conclusion?

Solution

Verified**a)** The task is to state the null and alternative hypotheses. This can be done by looking at the goal of the study.

The goal of the study is to determine if the mean monthly Internet bill in the southern state is less than the national mean of $\$32.79$. This can be determined by computing the sample mean Internet bill in the southern state of the chosen sample to test the hypothesis.

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