Question

A sample of 30 households showed that the sample mean of back-to-school spending is $622.85. It is believed that back-to-school spending is normally distributed with a population standard deviation of $65. An analyst wishes to test if the average back-to-school spending differ from $606.40 per family predicted by the trade group at the 5% significance level.

Answer 1

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The pvalue is 1.646 which is greater than the level of significance 0.05

This tells us to accept the null hypothesis.

P-value is 0.1646 > significance level.

We do not reject the null hypothesis.

So we can not say that average back to school spending is different from 606.4 dollars per family