A Toy Store Owner Hypothesizes, at the 95 Percent Level

question 14

Multiple Choice

A toy store owner hypothesizes, at the 95 percent level of confidence, that parents spend less than $100 on toys per visit to her store. A sample is taken and the hypothesis test shows a z value of -1.65. We:

• A) support the hypothesis
• B) do not support the hypothesis
• C) support the alternative hypothesis
• D) immediately take another sample
• E) try to take another sample in another toy store

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Definitions:

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as an annual percentage of the principal amount.

Simple Interest

A way of calculating interest where the interest charge is based on the original principal only and does not compound.

Repaid

The action of paying back borrowed money to a lender, either in installments or as a lump sum.

Loans

Sums of money borrowed that are expected to be paid back with interest, often under agreed-upon terms between lenders and borrowers.