A large furniture store furniture store has begun a new a ad campaign on local tv. Before the campaign, the long term average daily sales were $24,819. A random sample of 40 days during the new ad campaign gave a sample mean daily sale of x(xbar) = $25,630. Does this indicate that the population mean daily sales are now more than $24,819? Use a 1% level of significance. Asume \sigma = $1,917.
Please show the formulas
1. What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right tailed, or two tailed test?
2. Identify the sampling distribution you will use: the standard normal or the Students t distribution. What is the value of the sample test statistic?
3. Find (or estimate) the p value. Sketch the sampling distribution and show the area corresponding to the p value. (Alternate method: Find the critical value(s) and sketch the critical regions and the sample test statistic on the normal curve)
4. Based on your answers, will you reject or fail to reject the null hypothesis?
5. Interpet your decision in the context of the application.