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Business Statistics

Business Statistics
Part 1. Due at the beginning of class on Thursday 4/2.
Instructions. Failure to follow instructions will result in lost points (up to the full amount of the homework
1. The problems must be worked in order and the final answers must be clearly marked (circle/ highlight)
2. Show work. I do not expect to see every single detail (in some cases there is not much to show), but I
do need to understand what you did to obtain the result as well as what the result is supposed to
W. Just writing down a single number is NOT sufficient.
0 Use/follow the template (posted on Blackboard with the homework) for all hypothesis test
3. Round everything to 4 decimal places (intermediate calculations and final answers). Make sure to
round properly: e.g., 7.00119 -> 7.0012, 7.00115 ->7.0012, 7.00113 -> 7.0011, etc.
4. Please answer the questions on a separate sheet of paper, do NOT try to fit the answers on the
homework printout next to the questions.
Problem 1. (7pts). The director of admissions at a large university advises parents of incoming students about
the cost of textbooks during a typical semester. He selected a sample of 64 students and recorded their
textbook expenses for the semester. He then computed the sample mean cost of $612 and a sample standard
deviation of $53. Use a = 0.05 and the critical value approach. Is there evidence that the population mean is
greater than $600?

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