The National Club Association does periodic studies on issues important to its membership. The 2012 Executive Summary of the Club Managers Association of America reported that the average country club initiation fee was $31,912. Suppose a random sample taken in 2009 of 12 country clubs produced the following initiation fees: Based on the sample information, can you conclude at the α = 0.05 level of significance that the average 2009 country club initiation fees are lower than the 2008 average? Conduct your test at the level of significance.
A) Because t = -0.4324 is not less than t critical = -1.4512, do not reject Ho. The 2009 average country club initiation fee is not less than the 2008 average.
B) Because t = -0.4324 is not less than t critical = -1.4512, reject Ho. The 2009 average country club initiation fee is less than the 2008 average.
C) Because t = -0.5394 is not less than t critical = -1.7959, do not reject Ho. The 2009 average country club initiation fee is not less than the 2008 average.
D) Because t = -0.5394 is not less than t critical = -1.7959, reject Ho. The 2009 average country club initiation fee is less than the 2008 average.

Question

The National Club Association does periodic studies on issues important to its membership. The 2012 Executive Summary of the Club Managers Association of America reported that the average country club initiation fee was $31,912. Suppose a random sample taken in 2009 of 12 country clubs produced the following initiation fees:  Based on the sample information, can you conclude at the α = 0.05 level of significance that the average 2009 country club initiation fees are lower than the 2008 average? Conduct your test at the level of significance.
A) Because t = -0.4324 is not less than t critical = -1.4512, do not reject Ho. The 2009 average country club initiation fee is not less than the 2008 average. 
B) Because t = -0.4324 is not less than t critical = -1.4512, reject Ho. The 2009 average country club initiation fee is less than the 2008 average. 
C) Because t = -0.5394 is not less than t critical = -1.7959, do not reject Ho. The 2009 average country club initiation fee is not less than the 2008 average. 
D) Because t = -0.5394 is not less than t critical = -1.7959, reject Ho. The 2009 average country club initiation fee is less than the 2008 average.

Quizplus · Accepted Answer

The Answer of The National Club Association does periodic studies on issues important to its membership. The 2012 Executive Summary of the Club Managers Association of America reported that the average country club initiation fee was $31,912. Suppose a random sample taken in 2009 of 12 country clubs produced the following initiation fees:  Based on the sample information, can you conclude at the α = 0.05 level of significance that the average 2009 country club initiation fees are lower than the 2008 average? Conduct your test at the level of significance.
A) Because t = -0.4324 is not less than t critical = -1.4512, do not reject Ho. The 2009 average country club initiation fee is not less than the 2008 average. 
B) Because t = -0.4324 is not less than t critical = -1.4512, reject Ho. The 2009 average country club initiation fee is less than the 2008 average. 
C) Because t = -0.5394 is not less than t critical = -1.7959, do not reject Ho. The 2009 average country club initiation fee is not less than the 2008 average. 
D) Because t = -0.5394 is not less than t critical = -1.7959, reject Ho. The 2009 average country club initiation fee is less than the 2008 average.

The National Club Association Does Periodic Studies on Issues Important