Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Refer to Exhibit 20.1.At the 5% significance level,the critical value is:
A)2
B)19
C)0
D)28

Question

Exhibit 20.1.A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop.  Refer to Exhibit 20.1.At the 5% significance level,the critical value is:
A)2 
B)19 
C)0 
D)28

Quizplus · Accepted Answer

The critical value for a one-tailed test with α=0.05 and 10 degrees of freedom is 1.812. The sample size is not provided in the exhibit, so we cannot use a t-test. Instead, we can use a one-sample sign test. Since we have 10 observations, the critical value is 19.