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Billy Wants to Test Whether the Average Speed of His

question 104

Essay

Billy wants to test whether the average speed of his favorite pitcher's fastball differs from the league average of 92 miles per hour. He takes a sample of 36 of the pitcher's fastballs and computes a sample mean of 94 miles per hour. Assume that the standard deviation of the population is 4 miles per hour.
A) Specify the null and alternative hypotheses to test Billy's claim.
B) Calculate the value of the test statistic and the p-value.
C) At the 5% significance level, can you conclude that Billy's favorite pitcher's fastball differs in speed from the league average?
D) At the 1% significance level, can you conclude that Billy's favorite pitcher's fastball differs in speed from the league average?

Definitions:

Residual Value

Residual value is the estimated value of a fixed asset at the end of its useful life, reflecting what it can be sold for or its salvage value.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and government entities.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States for financial reporting, providing guidelines on how financial statements should be prepared and disclosed.

IRS

The Internal Revenue Service, a U.S. government agency responsible for tax collection and enforcement of tax laws.