A toy store owner hypothesizes, at the 95 percent level of confidence, that parents spend less than $100 on toys per visit to her store. A sample is taken and the hypothesis test shows a z value of -1.65. We:
A) support the hypothesis
B) do not support the hypothesis
C) support the alternative hypothesis
D) immediately take another sample
E) try to take another sample in another toy store

Question

Quizplus · Accepted Answer

The z-value is negative, which means that the sample mean is less than the hypothesized mean. This supports the hypothesis that parents spend less than $100 on toys per visit to the store.

A Toy Store Owner Hypothesizes, at the 95 Percent Level