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The college bookstore says that the average cost of textbooks is $52 with a standard deviation of $4.50. a group of skeptical statistics students want to test the bookstore’s claim with a sample of 100 books, and find a mean of $53.

a) what decision should the students make if they set alpha to .01?

b.) Compare and contrast the benefits and drawbacks of having a high alpha level vs. a low alpha level. What are some of the practical/real world implications of either setting an alpha level too high (i.e., .1) or too low (i.e., .001) in your study/analysis?

User Blowmage
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Answer:

The problem solution is given in the attachments.

The college bookstore says that the average cost of textbooks is $52 with a standard-example-1
The college bookstore says that the average cost of textbooks is $52 with a standard-example-2
User Aditya Prakash
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