A consumer product magazine recently ran a story concerning the increasing prices of digital cameras. The story stated that digital camera prices dipped a couple of years ago, but now are beginning to increase in price because of added features. According to the story, the average price of all digital cameras a couple of years ago was $215.00. A random sample of n = 200 cameras was recently taken and entered into a spreadsheet. It was desired to test to determine if that average price of all digital cameras is now more than $215.00. Find the large-sample rejection region appropriate for this test if we are using α = 0.05. A) Reject if or .
B) Reject if or .
C) Reject if .
D) Reject if .
Correct Answer:
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Q25: For the given rejection region, sketch the
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