The average cost for the sample of 5 sales of a product is $\bar{x}$ =$230 and the sample standard deviation is s = $17.50.The hypothesized mean is μ₀= $250.Compute the value of the test statistic.
A)-2.56
B)-4.00
C)-1.67
D)-3.87

Question

Quizplus · Accepted Answer

The test statistic is calculated using the formula: $ t = \frac{\bar{x} - \mu_0}{s/\sqrt{n}} $. Substituting the given values: $ t = \frac{230 - 250}{17.50/\sqrt{5}} = -2.56 $.

The Average Cost for the Sample of 5 Sales of a Product