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. This means the sample:
A) supports the hypothesis.
B) does not support the hypothesis.
C) supports the alternative hypothesis.
D) is inaccurate and we need to take another sample.
E) is too small and we need to do more surveys.

Question

Quizplus · Accepted Answer

The critical z value for a one-tailed test at the 95% confidence level is -1.645. Since the calculated z value of -1.65 is less than -1.645, it falls in the rejection region, supporting the hypothesis that parents spend less than $100.

A Toy Store Owner Hypothesizes, at the 95 Percent Level