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:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha and used to determine the threshold for statistical significance.

Test Statistic

A numerical value calculated from sample data that is used in a statistical test to evaluate the plausibility of a hypothesis about a population parameter.

November Low Temperature

The minimum temperature recorded or expected in the month of November, often used in climate and weather analysis.

Normal Distribution

A symmetric probability distribution that is characterized by a bell-shaped curve, relevant in statistical analyses.