A Consumer Product Magazine Recently Ran a Story Concerning the Increasing

question 51

Multiple Choice

A consumer product magazine recently ran a story concerning the increasing prices of digital cameras. The story stated that digital camera prices dipped a couple of years ago, but are now beginning to increase in price because of added features. According to the story, the average price of all digital cameras a couple of years ago was $\$ 215.00$ . A random sample of cameras was recently taken and entered into a spreadsheet. It was desired to test to determine if that average price of all digital cameras is now more than $\$ 215.00$ . What null and alternative hypothesis should be tested?

• A) \(\mathrm { H } _ { 0 } : \mu \geq 215\) vs. \(\mathrm { H } _ { \mathrm { A } } : \mu < 215\)
• B) \(\mathrm { H } _ { 0 } : \mu = 215\) vs. \(\mathrm { H } _ { \mathrm { A } } : \mu > 215\)
• C) \(\mathrm { H } _ { 0 } : \mu = 215\) vs. \(\mathrm { H } _ { \mathrm { A } } : \mu < 215\)
• D) \(\mathrm { H } _ { 0 } : \mu = 215\) vs. \(\mathrm { H } _ { \mathrm { A } } : \mu \neq 215\)

---

Definitions:

T-Distribution

A probability distribution that is symmetric and bell-shaped, used in hypothesis testing and setting confidence intervals when the sample size is small.

Population Normal

Population normal, often referring to a normal distribution in a population, describes a bell-shaped frequency distribution that is symmetric about the mean.

Hourly Fees

A method of billing where charges are applied based on the amount of time spent on a task, usually measured in hours.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of making a Type I error.