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A recent survey indicated that the average amount spent for breakfast by business managers was $7.58 with a standard deviation of $0.42. It was felt that breakfasts on the West Coast were higher than $7.58. A sample of 81 business managers on the West Coast had an average breakfast cost of $7.65.
-At α = 0.05, what is the critical value?
A) 1.96
B) 1.5
C) -1.5
D) 1.65

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Quizplus · Accepted Answer

The test is a one-tailed test (right-tailed) since we are testing if the cost is higher. For a significance level of α = 0.05, the critical value for a one-tailed test is 1.65.

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