Question

Need help with this question, i have a test in a bit. Thanks!

Population Standard Deviation	5.0000
Sample Size	10
Sample Mean	54.7000
Confidence Interval
Confidence Coefficient	0.98
Lower Limit
Upper Limit
Hypothesis Test
Hypothesized Value	50
Test Statistic
P-value (Lower Tail)
P-value (Upper Tail)
P-value (Two Tail)	0.0030

Sample Size	10
Sample Mean	54.7000
Sample Standard Deviation	3.8020
Confidence Interval
Confidence Coefficient	0.98
Lower Limit
Upper Limit
Hypothesis Test
Hypothesized Value	50
Test Statistic
P-value (Lower Tail)
P-value (Upper Tail)
P-value (Two Tail)	0.0036

Studies show that massage therapy has a variety of health benefits. Ten typical one-hour massage therapy sessions were randomly selected, the amount charged for those sessions recorded, and this information put into Excel. Does the data suggest that the average charge for a typical one-hour massage therapy session is greater than $50 at α=.005? Based on this paragraph of text, use the correct excel output above to answer the following question.

For the hypothesis stated above, what is(are) the critical value(s)?

	a.	2.33
	b.	3.250
	c.	3.169
	d.	None of the answers is correct
	e.	2.575

Answer 1

As population standard deviation is given, we will use z-statistic to perform the hypothesis test.

Rejection Region
This is right tailed test, for α = 0.005
Critical value of z is 2.5758.
Hence reject H0 if z > 2.5758

Option E