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Q10E

Expert-verified
Found in: Page 398

Book edition 13th
Author(s) James T. McClave, P. George Benson, Terry Sincich
Pages 888 pages
ISBN 9780134506593

Play Golf America program. The Professional Golf Association (PGA) and Golf Digest have developed the Play Golf America program, in which teaching professionals at participating golf clubs provide a free 10-minute lesson to new customers. According to Golf Digest, golf facilities that participate in the program gain, on average, $2,400 in greens fees, lessons, or equipment expenditures. A teaching professional at a golf club believes that the average gain in greens fees, lessons, or equipment expenditures for participating golf facilities exceeds$2,400. a. In order to support the claim made by the teaching professional, what null and alternative hypotheses should you test? b. Suppose you select α = 0.05. Interpret this value in the words of the problem. c. For α = 0.05, specify the rejection region of a large sample test.

a. The null and the alternative hypotheses are H0 : μ0 = $2400 against Ha : μ >$2400

Step 4: Specifying the rejection region

c.

For large sample tests, Z distribution can be used where

Z ~ N (0,1)

Let x be the critical value

Then, P (Z > x) = 0.05

From the standard normal table,

x = 1.645

So, the critical region is

[x,∞) = [1.645,∞ )

={x: Z 1.645}

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