Question

Download the hypothesis testing dataset from the class website.
1. This is case 1, in which the value of population standard deviation is assumed to be

known.
a. Compute the standard deviation of the textbook price and assume this to be the population standard deviation. Type this value in E5.

b. Pick a random sample of size 15.
c. Compute the mean of your random sample in E4 using the AVERAGE function. d. Calculate the standard error in cell E9 using the equation: S * √n.
e. Compute the z-statistic in cell E10 using the equation: (mean – 180) / s.e.
f. Compute the p-value for the lower tailed test in E13.

• Use the NORMSDIST equation and refer to your z-statistic calculated in cell E10 g. Calculate the critical z-values for α = .01 and .05 in cells I6 and I7.

• Use the NORMSINV function to find the corresponding critical value.

• Decide if you would or would not reject the null hypothesis. Put this in cells K6 and K7

  h. Decide if you would or would not reject the null hypothesis using the p-value as a tool. Put your answer in cell I13.

  i. Repeat the above steps for an upper tailed and two tailed test.

• Remember that your critical z value for upper tailed will be found using (1-α) asyour probability. P-value is 1 – NORMSDIST(E10)

• For a two-tailed test, the critical z value is found using (α/2) as your probability. Two-tailed p-value is 2*NORMSDIST(E10)

• Price of Textbook ($)
  193
  103
  186
  117
  117
  134
  135
  238
  154
  171
  172
  176
  103
  206
  207
  139
  226
  243
  159
  91
  165
  195
  218
  213
  191
  146
  146
  249
  227
  97
  134
  115
  116
  134
  221
  238
  239
  171
  87
  104
  104
  121
  208
  225
  129
  232
  210
  177
  178
  110
  184
  214
  153
  147
  234
  140
  167
  158
  122
  176
  104
  85
  136
  189
  154
  228
  172
  87
  191
  191
  123
  210
  142
  143
  234
  247
  179
  180
  162
  113
  216
  217
  136
  236
  82
  169
  101
  101
  205
  205
  137
  138
  241
  242
  174
  175
  107
  217
  211
  234
  229
  144
  248
  248
  181
  84
  113
  114
  217
  218
  150
  151
  138
  139
  242
  158
  90
  91
  194
  172
  127
  92
  231
  147
  250
  238
  97
  184
  201
  104
  218
  121
  236
  237
  169
  85
  102
  189
  170
  121
  138
  139
  131
  243
  234
  90
  144
  195
  163
  163
  128
  145
  117
  120
  139
  226
  158
  245
  177
  93
  173
  198
  130
  155
  235
  151
  83
  170
  102
  189
  121
  208
  140
  227
  159
  98
  153
  130
  172
  113
  230
  110
  219
  129
  238
  170
  172
  105
  156
  245
  113
  229
  145
  162
  213
  181
  183
  115
  202
  220
  136
  204
  241
  173
  248
  192
  108
  127
  214
  146
  233
  129
  167
  99
  186
  167
  83
  137
  224
  156
  220
  90
  91
  194
  110
  213
  129
  232
  148
  165
  81
  184
  100
  203
  84
  137
  224
  131
  243
  150
  91
  230
  88
  112
  215
  217
  150
  237
  169
  85
  188
  104
  207
  123
  226
  142
  159
  246
  92
  178
  88
  175
  107
  132
  235
  224
  83
  84
  164
  115
  121
  208
  140
  227
  159
  246
  178
  94
  197
  249
  181
  97
  150
  237
  169
  85
  188
  104
  185
  209
  226
  228
  161
  247
  180
  96
  199
  115
  218
  134

Answer 1